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The -"'^u "" 
NORTH CAROLiM 

REGISTER 



IN THIS ISSUE 




EXECUTIVE ORDER 

ADMINISTRATIVE ORDER 

FINAL DECISION LETTER 

NOTICE OF PETITION 

PROPOSED RULES 
Administration 
Agriculture 
Architecture 
Commerce 
CPA 

Housing Finance 
Human Resources 
Insurance 
Justice 
NRifeCD 

HNAL RULES 
Revenue 
Transportation 

LIST OF RULES AFFECTED 



ISSUE DATE: JANUARY 15, 1987 
Volume 1 • Issue 10 • Pages 671-761 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published monihly and 
contains informaiion relaiing to agency, executive, legislative and 
judicial actions required by or affecting Chapter 1 50B of the 
General Statutes All proposed administrative rules and amend- 
ments filed under Chapter I50B must be published in the Register 
The Register vull typically comprise apprommatelv one hundred 
pages per issue of legal text. 

Slate law requires that a copy of each issue be provided free 
of charge to each county in the state and to various state officials 
and institutions The North Carolina Register is available by 
yearly subscription at a cost of ninetvTive dollars (S95 00) for 
12 issues 

Requests for subscription to the North Carohna Register should 
be directed to the Office of Administrative Hearings. P O 
Drawer 11666. Raleigh. N C 27604. .Attn Subscriptions 

AIK3PTION, AMENDMENT, AND REPEAL OF RILES 

An agency intending to adopt, amend, or repeal a rule must 
first publish notice of the proposed action in the North Carolina 
Register The notice must include a reference to the Statutory 
Authority for the action; the time and place of the public hearing 
and a statement of how public comments may be submitted to 
the agency either at the hearing or otherwise, the text of the 
proposed rule or amendment, and the proposed effective date 

The Director of the Office of .Administrative Hearings has 
authority to publish a summary, rather than the full text, of any 
amendment which is considered to be too lengthv In such case, 
the full text of the rule containing the proposed amendment will 
be available for public inspection at the Rules Division of the 
Office of Administrative Hearings and at the office of the 
promulgating agency 

Following publication of the proposal in the North Carolina 
Register, at least 60 davs must elapse before the agency may take 
action on the proposed adoption, amendment or repeal 

When final action is taken, the promulgating agency must file 
any adopted or amended rule with the Office of Administrative 
Hearings If it differs substantially from the proposed form 
published as pan of the public notice, the adopted version will 
again be published in the Vorr/i Carolina Regiuer 

A rule, or amended rule, cannot become effective earlier than 
the first day of the second calendar month after the adoption is 
filed. 

Proposed action on rules may be withdrawn by the pro- 
m.ulgating agency at any time before final action is taken by the 
agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, some 
agencies may issue temporary rules A temporary rule becomes 
effective when adopted and remains in effect for the period 
specified in the rule or 120 days, whichever is less. An agency 
adopting a temporary rule must begin normal rule-making 
procedures on the permanent rule at the same time the temporary 
rule IS adopted. 



NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) is i 
compilation and index of the administrative rules of 25 stall 
agencies and M occupational licensing boards The NCAC 
comprises approximately 15,000 letter size, single spaced pagei 
of material of which approximately 35"^ is changed annually 
Compilation and publication of the NCAC is mandated by G S 
l50B-63(b) 

The Code is div ided into Titles and Chapters Each state agencv 
IS assigned a separate title which is further broken down b) 
chapters Title 2 I is dcsigna.,-d lor (Kxupational licensing boards 

The NCAC is available in two formats 

( 1 ) In looseleaf pages at a minimum cost of two dollars am 
50 cents i$2 50) for 10 pages or less, plus fifteen cents 
($0 15) per each additional page 

(2) On microfiche The microfiche edition is revised semi 
annually (March and October! and can be purchased foi 
fonv dollars ($40 OOi per edition. Due to the volunrx 
of the Code, the complete copy can only be purchased ot 
microfiche The NCAC on microfiche is updatec 
monthly by publication ci\ a "List of Rules .Affected' 
which >ets out rules filed the prev lous month, the aclioi 
taken, and the effective date of the change This list i 
published in the North Carolina Register 

Requests for looseleaf pages of rules or the NCAC oi 
microfiche should be directed to ihe Office of Adminisiraiiv< 
Hearings 



NOTE 

The foregoing is a generalized statement of the procedures tc 
be followed For specific statutory language, it is suggested iha 
Articles 2 and 5 of Chapter 1 508 of the General Statutes b) 
examined carefullv. 



CITATION TO THE NORTH CAROLINA REGISTER 

The North Carolina Register is cited by volume, issue, pagi 
number and date 1:1 NCR 101-201, April 1, 1986 refers tc 
Volume I . Issue I . pages 1 01 through 201 of the North Caroline 
Register issued on April 1. 1986 



.North Carolina Register Published monthly by the 
Office of Administrative Hearings. P O Drawer 1 1666, 
Raleigh. .Nonh Carolina 27604, pursuant to Chapter I50B 
of the General Statutes Subscriptions ninety-five dollars 
($95 00) per year 

North Carolina Administrative Code Published in 
March and October by the Office of Administrative 
Hearings. P O Drawer 11666, Raleigh, North Carolina 
27604, pursuant to Chapter I50B of the General Statutes. 
Subscriptions forty dollars ($40 00) per edition. 






ISSUE CONTENTS 



NORTH CAROLINA REGISTER 




EXECUTIVE ORDER 
Executive Order 30 



II. ADMINISTRATIVE ORDER 
Appointment of 
Robert R. Re illy, Jr 



III. 



IV. 



Office of Administrative Hearings 
P. 0. Drawer 11666 
Raleigh, NC 27604 
(919) 733 - 2678 



Staff: 

Robert A. Melott, 

Director 
James R. Scarcella> 

Deputy Director 
Molly Mason, 

Assistant Director 
Ruby Creech, 

Publications Coordinator 
Mary Fowler, 

Editorial Assistant 
Teresa Johnson, 

Editorial Assistant 
Tammy Poole, 

Records Clerk 



V. 



FINAL DECISION LETTER 
Voting Rights Act . . 



NOTICE OF PETITIONS 
Municipal Incorporations 



672 



673 



674 



676 



PROPOSED RULES 
Administration 
Auxiliary Services . . . 677 
Governor's Advocacy 
Council on Children 

and Youth 681 

State Employees 

Combined Campaign .... 681 
State Property 

and Construction .... 677 
State Youth Advisory 

Council 680 

Agriculture 
Gasoline and Oil 
Inspection Board .... 683 
Commerce 
Banking Commission .... 689 

Milk Commission 689 

Human Resources 

Corrections 671 

Departmental Rules .... 691 

Drug Commission 729 

Health Services 698 

Mental Health 720 

Services for the Blind . . 727 
Independent Agencies 
N.C. Housing Finance 

Agency 740 

Insurance 
Engineering and 

Building Code 729 

Justice 

Alarm Systems 730 

Licensing Boards 

Architecture 734 

CPA Examiners 734 

NR&CD 
Coastal Management .... 733 



:1 I 



VI. FINAL RULES 

Revenue 748 

Transportation 754 

VII. LIST OF RULES AFFECTED 

Volume 11 , No. 3 755 

(January 1, 1987) 

VIII. CUMULATIVE INDEX 758 



NORTH CAROLINA REGISTER 
Publication Deadlines and Schedules 
(April 1986 - March 1987) 



Issue 


Last Day 


Last Day 


Earliest 


Earliest 


X 


Date 


for 


for 


Date for 


Date for 


Earliest 




Filing 


Electronic 


Public 


Adoption 


Effective 






Filing 


Hearing 


by Agency 


Date 


12/15/86 


11/25/86 


12/02/86 


01/14/87 


02/13/87 


04/01/87 


01/15/87 


12/29/86 


01/05/87 


02/14/87 


03/16/87 


05/01/87 


02/16/87 


01/26/87 


02/02/87 


03/18/87 


04/17/87 


06/01/87 


03/16/87 


02/23/87 


03/02/87 


04/15/87 


05/15/87 


07/01/87 


04/15/87 


03/26/87 


04/02/87 


05/15/87 


06/14/87 


09/01/87 


05/15/87 


04/27/87 


05/04/87 


06/14/87 


07/14/87 


10/01/87 


06/15/87 


05/26/87 


06/02/87 


07/15/87 


08/14/87 


11/01/87 


07/15/87 


06/25/87 


07/02/87 


08/14/87 


09/13/87 


12/01/87 


08/14/87 


07/27/87 


08/03/87 


09/13/87 


10/13/87 


01/01/88 


09/15/87 


08/26/87 


09/02/87 


10/15/87 


11/14/87 


02/01/88 


10/15/87 


09/25/87 


10/02/87 


1 1/14/87 


12/14/87 


03/01/88 


11/16/87 


10/27/87 


1 1/03/87 


12/16/87 


01/15/88 


04/01/88 


12/15/87 


11/23/87 


12/02/87 


01/14/88 


02/13/88 


05/01/88 


01/15/88 


12/28/87 


01/04/88 


02/14/88 


03/15/88 


06/01/88 


02/15/88 


01/26/88 


02/02/88 


03/16/88 


04/15/88 


07/01/88 


03/15/88 


02/24/88 


03/02/88 


04/14/88 


05/14/88 


08/01/88 



X The "Earliest Effective Date" was considering the agency files the 
rules with The Administrative Rules Review Commission the same 
calendar month as adoption by agency and ARRC approves the rules at 
the next calendar month meeting. 



CORRECTIONS 

CORRECTION OF PROPOSED AMENDMENT TO 10 NCAC 42C .2002(2) AS PUBLISHED 
IN THE NORTH CAROLINA REGISTER, VOLUME 1, ISSUE 9, ON PAGE 620. THE 
PROPOSED AMENDMENT SHOULD READ: 

(2) The qualifications of the administrator 

and co-administrator referenced in Paragraphs (3), (7), (8), and 
(12) (9) of Rule .2001 of this Subchapter shall apply to the 
supervisor-in-charge . The supervisor-in-charge must meet a 
minimum educational requirement by being at least a high school 
graduate or certified under the G.E.D. Program or by passing an 
alternative examination established by the Department of Human 
Resources . This e du c a t ional req uir e m e n t sliall aupply o nly -to 
i.uy e rvii.ui& in charg e approved af te r January +-r 1 9 77 . 
Documentation that these qualifications have been met must be on 
file in the home prior to emploving the supervisor-in-charqe; 

CORRECTION OF PROPOSED AMENDMENT TO 10 NCAC 42D .1603(b) AS 

PUBLISHED IN THE NORTH CAROLINA REGISTER, VOLUME 1, ISSUE 9, ON PAGE 

630. THE PROPOSED AMENDMENT SHOULD READ: 

(b) There must be at least 12 rehearsals of the fir e e vacua t ion 
fire/disaster plan each year (four times on each shift). with -ark 
lea&t one t o t al e vacua t ion trf th« building e i/ e ry s-ix months ( o n e on 
firs t and s ec ond shifts) . AH third shif t p e rsonn e l are to 
participa te -in t h e two total evacua t ions . 



NORTH CAROLINA REGISTER 671 



EXECUTIVE ORDER 

EXECUTIVE ORDER NUMBER 30 

AMENDMENT TO EXECUTIVE ORDER 
NUMBER ONE ( 1 ) 



Under Executive Order 
Number 1 issued on January 31, 
1985, the North Carolina Board 
of Ethics was established to 
administer the Governor's 
requirements for public 
disclosure, ethics, and 
conflicts of interest. It has 
been made to appear that in 
order to properly perform its 
duties, the Board of Ethics 
should be enlarged to seven (7) 
members . 

NOW, THEREFORE, IT IS 
ORDERED : 

Section 2 on page two (2) 
of Executive Order Number One 
dated January 31, 1985, is 
amended to read as follows: 

Section 2. North Carolina 



Board of Ethics. There is 
hereby established the 
North Carolina Board of 
Ethics consisting of seven 
(7) persons to be appointed 
by the Governor to serve at 
his pleasure. The Governor 
shall, from time to time, 
designate one of the 
members as Chairman. The 
members shall receive no 
compensation, but shall 
receive reimbursement for 
any necessary expenses 
incurred in connection with 
the performance of their 
duties pursuant to General 
Statute 138-5. The Board 
of Ethics shall not be 
considered a public office 
for the purpose of dual 
office holding. 

Each and every other section of 
Executive Order Number One dated 
January 31, 1985, is continued 
in full force and effect. 

Done in Raleigh, this the 
15th day of December, 1986. 



672 



NORTH CAROLINA REGISTER 



ADMINISTRATIVE ORDER 

STATE OF NORTH CAROLINA 

Office of Administrative Hearings 



TO ALL TO WHOM THESE PRESENTS SHALL COME - GREETING; 

I, Robert A. Melott, Reposing special trust and confidence in the 
integrity and knowledge of ROBERT ROOSEVELT REILLY, JR., now, by 
virtue of the authority vested in me by law I do hereby appoint him 
Administrative Law Judge and confer upon him all of the rights, 
privileges and powers useful and necessary to the just and proper 
discharge of his duties. 

In Witness Whereof, I have hereunto signed my name and affixed the 
Seal of the Office of Administrative Hearings of the State of North 
Carolina, at Raleigh, North Carolina, this the 2nd day of January 
1987. 

s/Robert A. Melott 

Chief Administrative Law Judge 

Director 



NORTH CAROLINA REGISTER 673 



VOTING RIGHTS ACT FINAL DECISION LETTER 

[G.S. 120-30. 9H, effective July 16, 1986, requires that all letters 
and other documents issued by the Attorney General of the United 
States in which a final decision is made concerning a "change 
affecting voting" under Section 5 of the Voting Rights Act of 1965 be 
published in the North Carolina Register.] 



WBRiSHRsgmh 
DJ 166-012-3 
R2399 



U.S. Department of Justice 
Washington, D.C. 20530 



December 15, 1986 



Michael Crowell, Esq. 
Tharrington, Smith & Hargrove 
P. 0. Box 1151 
Raleigh, NC 27602 

Dear Mr. Crowell: 

This refers to the five-seat special election for the Onslow 
County Board of Education, North Carolina, submitted to the Attorney 
General pursuant to Section 5 of the Voting Rights Act of 1965, as 
amended, 42 U.S.C. 1973c. We received your initial submission on 
October 14, 1986; supplemental information was received on October 20, 
November 25 and December 8, 1986. In accordance with your request, 
expedited consideration has been given this submission pursuant to the 
Procedures for the Administration of Section 5 (28 C.F.R. 51.32). 

At the outset, we believe that it may be useful to comment 
briefly on the effect of the objection interposed on May 12, 1986, to 
the use of residency districts in the at-large election system 
established by Chaper 525 (1977). As we stated in the objection 
letter, "the effect of the objection by the Attorney General is to 
make the method of election for the county [school] board described in 
Chapter 525 (1977) legally unenforceable." See e.g., Connor v. 
Waller, 421 U.S. 656 (1975); on Pitts v. Busbee, 511 F. 2d 126 (5th 
Cir. 1975); Terrazas v. Clements, 537 F. Supp . 514, 520 (N.D. Tex. 
1982). But for the illegal implementation of that system, there would 
have been four board members elected at large and as a group without 
regard to residence in 1980 and 1984 and three board members elected 
in the same manner in 1978, 1982 and 1986. Thus, in our view the 
objection affected the elections held for all board members pursuant 
to the Chapter 525 system. 



674 NORTH CAROLINA REGISTER 



We note further that the five-seat special election proposal 
contained in the instant submission, as well as the seven-seat special 
election plan> which was precleared on September 15. 1986, are 
responses to our earlier objection. As with the seven-seat plan, the 
Attorney General does not interpose any objection to the changes 
occasioned by the five-seat plan. However, we feel a responsibility 
to point out that Section 5 of the Voting Rights Act expressly 
provides that the failure of the Attorney General to object does not 
bar any subsequent judicial action to enjoin the enforcement of such 
change. In addition, as authorized by Section 5, the Attorney General 
reserves the right to reexamine this submission if additional 
information that would otherwise require an objection comes to his 
attention during the remainder of the sixty-day review period. See 
the Procedures for the Administration of Section 5 (28 C.F.R. 51.42 
and 51 .48). 

Sincerely, 

Wm . Bradford Reynolds 
Assistant Attorney General 
Civil Rights Division 



Byi 



Gerald W. Jones ' 
Chief, Voting Section 



NORTH CAROLINA REGISTER 675 



NOTICE OF PETITIONS 

FOR 

MUNICIPAL INCORPORATION 



[G.S. 150B-63(d1) requires publication of Notice that a Petition for 
Incorporation has been filed with the Joint Legislative Commission on 
Municipal Incorporations]. 

A petition under G.S. 120-163 has been filed with the Joint 
Legislative Commission on Municipal Incorporations seeking 
incorporation of a city to be known as Buffalo Lakes in Harnett 
County. 

This notice is published as required by G.S. 120-165(a). 



Gerry F. Cohen 

Counsel to the Commission 



676 NORTH CAROLINA REGISTER 



PROPOSED RULES 

TITLE 1 - ADMINISTRATION 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the Department of 
Administration intends to repeal 
regulations cited as 1 NCAC 4H 
.0101-. 0102; .0202-. 0205; .0208; 
amend 1 NCAC 4H .01 03-. 01 04; 
.0206. 

The proposed effective date of 
this action is May 1, 1987. 



Statutory Authority: 
143-340(21), (22). 



G.S. 



The public hearing will be 
conducted at 9:00 a.m. on 
February 18, 1987 at Advisory 
Budget Commission Conference 
Room, Administration Building, 
Fifth Floor, 116 West Jones 
Street, Raleigh, NC 27611. 

Comment Procedures: Any 
interested person may present 
his or her views and comments 
either in writing prior to or at 
the hearing or orally at the 
hearing. Any person may request 
information, permission tc be 
heard or copies of the Proposed 
Regulations by writing or 
calling (733-7232). 

CHAPTER 4 - AUXILIARY SERVICES 



SUBCHAPTER 4H 



SECURITY 



SECTION .0100 - GENERAL 
PROVISIONS 

.0101 ORGANIZATION (REPEALED) 

.0102 LOCATION (REPEALED) 

.0103 RESPONSIBILITIES AND 
SCOPE 

State gov e iiiment s e curi t y 
Capitol Police is responsible 
for the protection and security 
of state-owned and leased 
property located in the City of 
Raleigh and Wake County to 
administer and enforce laws, 
rules and regulations thereto; 
to provide normal police 
functions such as traffic 
control, patrolling state 
parkins lots, preventive 
enforc ment, investigation of 
crimes committed on state 
property and detection of fires, 
power failure, malfunctioning 
equipment, and to report these 
things to appropriate officials. 

.0104 AUTHORITY 

Gccurity Police officers of 
s t at e g ov e ijiiuent s ec uri t y State 
Capitol Police are appointed as 



special police officers and have 
the power of arrest in the City 
of Raleigh and on state property 
located in Wake County. These 
S e curity Police Officers receive 
the minimum training as required 
by Criminal Justice Training and 
Standards Council and are 
certified as law enforcement 
officers . 



SECTION .0200 



FUNCTIONS 



.0202 CRIME PREVENTION PROGRAM 
(REPEALED) 

.0203 SECURITY SURVEYS 
(REPEALED) 

.0204 LIAISON (REPEALED) 

.0205 POLICE INFORMATION 

NETWORK (PIN) (REPEALED) 

.0206 TRAFFIC ACCIDENTS 
All traffic accidents 
occurring on state property must 
be reported to State gov e rnmen t 
s ec uri t y Capitol Police. All 
accidents will be investigated. 
Those accidents estimated to 
have damage over t w o four 
hundred dollars (0200.00) 
($400 ■ 00) will be reported to 
Division of Motor Vehicles by 
the investigating agency. The 
reports of those accidents with 
damage less than two four 
hundred dollars 
($400.00) will be 
State gov e rnm e n t 
Capitol Police. 
accident reports 
furnished to 
involved and their 



(0200.00) 

filed with 

s e curity 

Copies of 

will be 

individuals 

insurance 



companies upon request. 



.0208 



PROPERTY GUARDS 
(REPEALED 



Notice is hereby given in 
accordance with G.S. 150B-12 
that the Department of 
Administration intends to amend 
regulations cited as 1 NCAC 6B 

.0206-. 0208; .0306; .0512; 

.0605; and .0607. 

The proposed effective date of 
this action is May 1, 1987. 

Statutory Authority: G.S. 
143-341 (4)d. ,f. ; 146-25.1; 
146-6; 146-11 & 12. 

The public hearing will be 
conducted at 3:00 p.m. on 
February 18, 1987 at Advisory 
Budget Commission Conference 
Room, Administration Building, 
Fifth Floor, 116 West Jones 
Street, Raleigh, North Carolina 
27611 . 



NORTH CAROLINA REGISTER 



677 



Comment Procedures: Any 
interested person may present 
his or her views and comments 
either in writing prior to or at 
the hearing or orally at the 
hearing. Ariy person may request 
information. permission to be 
heard or copies of the Proposed 
Regulations by writing or 
calling (733-7232). 

CHAPTER 6 - STATE PROPERTY AND 
CONSTRUCTION 

SUBCHAPTER 6B - REAL PROPERTY 

SECTION .0200 - ACQUISITION OF 
REAL PROPERTY 

.0206 LEASE NOT EXCEEDING 
$5,000: TERM NOT 
EXCEEDING THREE YEARS 

Leases where the annual rental 
does not exceed tl ' ire e five 
thousand dollars (03,000) 
( $5 , 000 ) or the term c'oes not 
exceed three years may be 
negotiated and signed as 
provided fo r xn t+re by Council 
of State resolutions. da te d 
Augus t 9- 1972, January 6-7- ^97A, 
arrd July +— 1 975, rebruary -H- 
1 9 77 and Augus t 2-r 1977. A copy 
of the executed lease must be 
forwarded to the Division of 
State Property. Departments not 
empowered to act by these 
resolutions must follow the 
procedures outlined in 
Regulations .0205 and .0207 of 
this Section for all leases 
involving annual rental not in 
excess of s e v e n twelve thousand 
fiv e hundred dollars (07,500) 
($12,000) . 

.0207 LEASE NOT EXCEEDING 

$12,000/TERM THREE YEARS 

If the annual rental does not 
exceed s e v e n twelve thousand 
fiv e hundr e d dollars (07,500) 
($12,000) and the term does not 
exceed three years, the steps 
listed are followed: 

(1) Agency forward PO-1 
(Acquisition of Real 
Property), PO-28 (Proposal to 
Lease to State), floor plan, 
and other available pertinent 
information to the Division 
of State Property; 

(2) Upon receiving the proper 
request, the Division of 
State Property will proceed 
to investigate the space 
needs and rental terms; 

(3) Upon completion of the 
investigation, the Division 
of State Property will either 
approve or reject the 
proposal ; 

(4) If approved the proposal 
will be referred to: 

(a) the State Budget Office 



for verification of funding; 

(b) the Attorney General's 
Office for preparation of 
the lease agreement; 

(c) the Secretary of 
Administration or designee 
for signature. 

The Division of State 
Property may delegate authority 
to certain agencies as it deems 
warranted to enter into leases 
without prior approval of the 
secretary of administration. 
Upon granting such authority in 
writing, the property office 
will include a list of rules 
that must be followed by the 
agency when handling such 
transactions . 

.0208 LEASE MORE THAN $12,000 
OR MORE THAN THREE YEARS 

For space needs where the 
annual rental exceeds s e v e n 
twelve thousand fiv e hundr e d 
dollars (07,500) ($12,000) or 
the term exceeds three years. 
Form PO-26 provides the basic 
steps to follow in the leasing 
procedures required by G.S. 
146-25.1. Additional guidance 
is provided below: 

(1) Specifications. The 
agency prepares a Form PO-27. 
This serves as a guideline 
for supplying information 
which a prospective lessor 
needs to make a lease 
proposal . 

(2) Advertising. Newspaper 
ads will be prepared by the 
Division of State Property 
and will be forwarded to the 
agency for submission to a 
newspaper of general 
circulation in the "Legal 
Notices" section or other 
appropriate section. The ad 
must run for at least five 
consecutive days and give a 
specific cut-off date for 
receiving proposals. The 
cut-off date must be at least 
seven days after the last day 
the ad is run. 

(3) Proposals. All proposals 
should be submitted on Form 
PO-28 which includes the 
basic information that is 
necessary to evaluate and 
compare each proposal 
received. All proposals must 
be submitted directly to the 
Division of State Property 
pri-^r to the time of cut-off. 

(4) Space Selection. After 
the location of desired space 
has been selected by the 
Division of State Property 
and reviewed by the agency, a 
Form PO-1 must be submitted 
by the agency to the Division 
of State Property requesting 
acquisition of the space. If 



678 



NORTH CAROLINA REGISTER 



the low proposal is not 
selected, a statement of 
justification must be 
submitted also. If in order, 
the Division of State 
Property will present the 
matter to the Council of 
State for consideration. 
Space selections will be made 
in keeping with 6.S. 146-23.1 
regarding the acquisition by 
the state of buildings and 
space in buildings having 
historic, architectural or 
cultural significance. 

SECTION .0300 - DISPOSITION OF 
REAL PROPERTY 

.0306 BY LEASE 

Any state agency desiring to 
dispose of real property by 
lease will first contact the 
Division of State Property to 
ascertain there is no state 
need. If it is determined that 
there is no state need, the 
agency may then dispose of such 
real property in keeping with 
the procedures noted in this 
Rule: 

(1) Where the annual rental 
does not exceed s e ven five 
thousand fiv e liundred dollars 
(07,500) ($5,000) or the term 
is not in excess of three 
years, disposition will be 
handled as follows: 

(a) When any agency desires 
to dispose of real property 
by lease, it shall file with 
the Department of 
Administration Form PO-2 
setting forth the facts 
relating to the proposed 
transaction . 

(b) Upon receipt of the 
prescribed application, the 
Division of State Property 
shall investigate all 
aspects of the proposed 
transaction. 

(c) If after investigation it 
is found by the Department 
of Administration that it is 
in the best interest of the 
state that the real property 
be disposed of by lease, 
proceedings for such 
disposition will then begin. 

(d) After the terms of said 
disposition have been agreed 
upon, the matter will be 
referred to: 

(i) The Office of the 

Attorney General for 
preparation of the lease; 

(ii) Secretary of 

Administration or designee 
for signature. 

(2) Where the annual rental is 
more than s e ven twelve 
thousand fiv e hundraJ dollars 
(07,500) ($12,000) or the 



term is in excess of three 
years, disposition will be 
handled as follows: 

(a) When any agency desires 
to dispose of real' property 
by lease, it shall file with 
the Department of 
Administration Form PO-2 
setting forth the facts 
relating to the proposed 
transaction . 

(b) Upon receipt of the 
prescribed application, the 
Department of Administration 
shall proceed to investigate 
all aspects of the proposed 
transaction . 

(c) If after investigation it 
is found by the Department 
of Administration that it is 
in the best interest of the 
state that the real property 
be disposed of by lease, 
proceedings for such 
disposition will then begin. 

(d) After the terms of said 
disposition have been agreed 
upon, the matter will be 
presented to the Council of 
State for approval. 

(e) After approval by the 
Council of State, the matter 
will be transferred to the 
Office of the Attorney 
General to draw the lease. 

(f) After lessor executes the 
lease it will be forwarded 
to the Governor and 
Secretary of State for 
signature . 

(g) The North Carolina State 
Department of Agriculture 
was empowered by Council of 
State Resolution of July 1, 
1975 to enter into leases 
and contracts not exceeding 
15 days for buildings and 
services on the State 
Fairgrounds . 

The Division of State Property 
may delegate authority to 
certain agencies as it deems 
warranted to enter into leases 
without prior approval of the 
Secretary of Administration. 
Upon granting such authority in 
writing, the Property Office 
will include a list of rules 
that must be followed by the 
agency when handling such 
transactions . 

SECTION .0500 - EASEMENTS TO 
FILL 

.0512 FILLING BY LOCAL 
GOVERNMENTS 

(a) Easements to fill will be 
granted to local governments 
which are riparian owners, where 
the fill will serve the public 
interest and meets the 
requirements of .0506 of this 
Section . 



NORTH CAROLINA REGISTER 



679 



(b) Consideration for the 
quitclaim deed to such raised 
land shall be t h e valu e oif t h e 
land rais e d^ l e ss t h e cost -to 
bulkli e ad artd fill -thw subjecl 

land determined by the 

Department of Administration. 

SECTION .0600 - OTHER EASEMENTS 
OVER WATER 

.0605 STRUCTURES 

(a) Pi e rs or docks whi c h 
provid e riparian access to 
navigabl e wa ter s -aire allow e d and 
no e as e men t -irs r e quired . Gu c h 
s t ruc t ures may ire c o v ere d by a 
wea t h e ipi oof sh e l te r so long trs 
t h e us e of th e slielter e d ar e a -rs 
■JTt k eep in g wi t h the provision of 
riparian access to tfre wa te r . 
Riparian owners may construct 
piers or docks to gain access to 
navigable waters without an 
easement. Such structures may 
include a weatherproof shelter 
if the use of the shelter is in 
keeping with riparian access. 

(b) An easem e n t -irs r e quir e d for 
any ati uctur e buil t ovct 
navigable wa t ers oth e r t han 
t lios e providin g simpl e riparian 
acc e ss ■ Such e asem e n t s will no+ 
he granted for struc t ures or 
facili t i e s t ha t can be located 
ov e r land . Exampl e s of 
structur e s not allowed ar e . 
u t ility buildin g s . dw e llings , 
ho te ls , r e stauran t s > business e s . 
apar t m e n t s . e t c . Easements in 
lands covered by navigable 
waters are generally reguired 
for any structure built over 
navigable waters for purposes 
other than gaining riparian 

access . The Department of 

Administration may exempt from 
this provision structures deemed 
minor in their impact upon the 
public trust waters of the 
State. Examples of such exempt 
structures include boat ramps, 
duck blinds, small groins, and 
the like. 

(c) Eas e m e nts vre not r e quir e d 
for coi i imercial fishing n et s> 
fish offals, lampst boathouses » 
pi e r s , duck blinds i or o t lier 
structur e s whi c h ar e d e em e d, dtre 
to t h e i r na t u re and scop e , not 
to warran t such eas e m e n t s by t lie 
Depar t ment of Adminis brat ion . 
Easements in lands covered by 
navigable waters will be granted 

upon application to the 

Department of Administration for 
such purposes and upon such 
conditions as the Department of 
Administration may deem proper 
and in the public interest, with 
approval of the Governor and the 
Council of State. 

.0607 APPLICATION AND COST 



Application mus t bo fil e d w ith 
the Division of Stat e P ro p e rty 
for sucli e as e m e n t s . Tho 
adminis ti aliv e charg e -irs one 
hundr e d dollars (0100 .00) or 
o t h e r re asonabl e administrativ e 
cliarges sot by tho D e partm e nt of 
Adminis t ra t ion, and must 
accompany t h e application . A 
plat of t h e propos e d project or 
oth e r d e scription de e m e d 
sa t isfactory by t h e Division of 
Stat e Prop e rty mus t accompany 
the a pp lica t ion. 

(a) Application must be filed 
with the Division of State 
Property of the Department of 



Administrat ion 



for 



such 



easements. The administrative 
charge is one hundred dollars 
($100.00) or other reasonable 
administrative charges set by 
the Department of 



Administration, 



and 



must 



accompany the application. 

plat of the proposed project or 



other 



description 



deemed 



satisfactory by the Division of 
State Property must accompany 
the application. 

(b) The department may, with 
the approval of the Governor and 
Council of State, establish 
consideration for easements in 
addition to the administrative 
charge . 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the Department of 
Administration intends to repeal 
regulations cited as 1 NCAC 19 
.0101; .0102; .0104; .0105; and 
.0201; .0202; .0301; .0302; 
amend 1 NCAC 19 .0103. 

The proposed effective date of 
this action is May 1, 1987. 



Statutory 
143B-385; 
143B-419. 



Authority; 
143B-388; 



1438-418; 



The public hearing will be 
conducted at 11:00 a.m. on 
February 18, 1987 at Advisory 
Budget Commission Conference 
Room, Administration Building, 
Fifth Floor, 116 West Jones 
Street, Raleigh, NC 27611. 

Comment Procedures: Any 
interested person may present 
his or her views and comments 
either in writing prior to or at 
the hearing or orally at the 
hearing. Any person may request 
information, permission to be 
heard or copies of the Proposed 
Regulations by writing or 
calling (733-7232). 

CHAPTER 19 - STATE YOUTH 
ADVISORY COUNCIL 



680 



NORTH CAROLINA REGISTER 



SECTION .0100 - STATE YOUTH 
COUNCIL 



.0101 



ROLE OF COUNCIL 
(REPEALED) 



.0102 STAFF SUPPORT (REPEALED) 

.0103 ELECTION OF YOUTH 

MEMBERS 
El e ction trf 4-0 youth memb e rs xrf 
•the You t il Advisory Council shall 
ire lield -in Mtry nt "th* S t a t e 
You t h Council' s annual 
conv e n t ion ■ Fiv e s e niors tntd 
fiv e juniors shall b« e lect e d . 
&f ttt« youth m e mb e rs e l e c te d 
und e r t his Rule > -the s e niors 
sliall s e rv e -foir a te rm o^ OTt« 
y e ar > t h e juniors shall s e rv e 
for t w o . 

Two basic guid e lin e s are 
sugg e sted for t h e e l e c t ion ryf 
you t h memb e rs • 
( 1 ) You t h m e mb e rs ar« -to b« 
repr e s e n t ativ e of-r 
( a) organiz e d youth groups -in 

the state f 
■fb-)- yaogi jphic ar e as vrf the 

stat e , 
(c. ) e cono m ic arrd et hni c 
groups o-f "Hte s t a t e ; 
(2 ) Prosp e ctiv e you t h me m b er s 
are to hav e d e mons t ra te d or 
hav e p o te n t ial leadership 
cjual3.vi.es . 
You t h m e mb e rs e l e c te d -in May 
shall have -the privil e g e trf 
a t tendin g m eetings of t h e 
council arrd assignm e n t -bo 
committ ee s with the righ t trf 
discussion btrt wi t hou t the r igh t 
of vo t e until tli e ir terms of 
o ffic e b e gin -in July . 

(a) Six of the 10 youth 
members are elected bv the State 
Youth Council during their 

annual convention . The 

remaining four youth members are 
appointed bv the Governor and 
should be representative of high 
school youth organizations (4-H, 
Scouts, NAACP Youth Council, 
Vocational Industrial Clubs of 
America, N.C. Native American 

Youth Organization . etc . ) . 

Youth members are those members 
currently enrolled in a public 
or private high school. 

(b) The Chair of the State 
Youth Council serves in the 
capacity of Vice-Chair for the 
Youth Advisory Council. 



.0104 



STAFF ORGANIZATION 
(REPEALED) 



.0105 STATE YOUTH COUNCIL 
(REPEALED) 

.0201 ORGANIZATION (REPEALED) 

,0202 LOCATION AND OFFICE 



HOURS (REPEALED) 

.0301 FUNCTIONS AND DUTIES 
(REPEALED) 

.0302 STAFF ORGANIZATION 
(REPEALED) 



Notice is hereby given in 
accordance with G.S. 150B-12 
that the Department of 
Administration intends to repeal 
regulations cited as 1 NCAC 27 
.0101-. 0102; .0201-. 0202. 

The proposed effective date of 
this action is May 1, 1987. 



Statutory Authority: 
143B-414; 143B-416. 



G.S. 



The public hearing will be 
conducted at 1:00 p.m. on 
February 18, 1987 at Advisory 
Budget Commission Conference 
Room, Administration Building, 
Fifth Floor, 116 West Jones 
Street, Raleigh, NC 27611. 

Comment Procedures : Any 
interested person may present 
his or her views and comments 
either in writing prior to or at 
the hearing or orally at the 
hearing. Any person may request 
information, permission to be 
heard or copies of the Proposed 
Regulations by writing or 
calling (733-7232). 

CHAPTER 27 - GOVERNOR'S ADVOCACY 
COUNCIL ON CHILDREN & YOUTH 

SECTION .0100 - LOCATION AND 
ORGANIZATION 

.0101 LOCATION (REPEALED) 

.0102 ORGANIZATION (REPEALED) 

SECTION .0200 - DUTIES AND 
AUTHORITIES 

.0201 DUTIES (REPEALED) 

.0202 ACCESS TO INFORMATION 
(REPEALED) 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the Department of 
Administration intends to amend 
regulations cited as 1 NCAC 35 
.0202; .0302. 

The proposed effective date of 
this action is May 1, 1987. 



Statutory Authority: 
143B-10; 147-62. 



G.S. 



The public hearing will be 
conducted at 10:00 a.m. on 



NORTH CAROLINA REGISTER 



681 



February 19, 1987 at Advisory 
Budget Commission Conference 
Room, Administration Building, 
Fifth Floor. 116 West Jones 
Street, Raleigh, NC 27611. 

Comment Procedures: Any 
interested person may present 
his or her views and comments 
either in writing prior to or at 
the hearing or orally at the 
hearing. Any person may request 
information, permission to be 
heard or copies of the proposed 
regulations by writing or 
calling Fran Tomlin, Department 
of Administration, 116 W. Jones 
Street, Raleigh, NC 27611 (919) 
733-7232. 

CHAPTER 35 - STATE EMPLOYEES 
COMBINED CAMPAIGN 

SECTION .0200 - ELIGIBLE 
ORGANIZATIONS 

.0202 CRITERIA FOR ACCEPTANCE 
Organizations must meet the 
following criteria to be 
accepted as participants in the 
Combined Campaign: 

(1) The organization must be 
licensed to solicit funds in 
North Carolina. 

(2) Must be directed by an 
active Board of Directors, 
which meets regularly and 
whose members serve without 
compensation . 

(3) Have a 501C(3) tax e.xempt 
status for both the IRS and 
N. C. tax purposes. 

(4) Must prepare and make 
available to the general 
public an annual financial 
report, which is certified by 
an independent public 
accountant . 

(5) If fundraising and 
administrative expenses are 
in excess of 25 percent of 
total revenue, must 
demonstrate to the 
satisfaction of the S.E.C.C. 
that those expenses for this 
purpose are reasonable under 
all the circumstances of the 
case . 

(6) Must certify that all 
publicity and promotional 
activities are truthful and 
non-deceptive . 

(7) Must agree to the 
confidentiality of the 
contributor list, and must 
promise no unauthorized use 
of this list . 

(8) Must permit no payments of 
commissions, kickbacks, 
finders fees, percentages, 
bonuses, or overrides for 
fundraising, and permit no 
paid solicitations of the 
public . 



(9) Must have a policy of 
non-discrimination on the 
basis of race, color, 
religion, sex, age, national 
origin or physical or mental 
handicap for clients of the 
agency, employees of the 
agency and members of the 
governing board. Agencies 
which have been organized 
along religious lines, or 
which are organized to serve 
persons of a particular sex 
or race may be considered for 
eligibility if a bona fide 
purpose for organizing along 
such lines can be shown. 

(10) Mus t piui/id e b e n e fits tre 
a .evvit- e i. wi t hin t li e local 
co m munity , m e anin g t ha t 
employ ee s -in ■Hre sulicita t ioii 
air e a «rr t h e i r famili e s should 
bw abl e to rec e iv e s e i vii, e a 
from t h e agency withlji a 
re asonabl e distanc e , or 
r e c e iv e b e n e fi t s from 
volun t ary ag e nci e s . Exampl e s 
rr£ s e rvic e s a re : 

■(-zr> research and e duca t ion -in 
the heal t h and w e lfar e or 
e ducation fi e lds; 
■^ir^ family and child ca re 

s e rvic e s ; 
•(-c-)- pro t ec t iv e servic e s -for 

childr e n and adul t s i 
•frH- s e rvic e s -for cl ' iildr ei i and 

adults -in fos te r car e ; 
( e ) s e rvices r e la te d to th e 
manag e m e nt and maint e nan ce 
of th« hom e ; 
-(-f-> day car e servic e s -for 

adul t s and childr e n; 
<-g^ transpui taiioii s e rvic e s, 
information ref erral and 
couns e ling s e rvic e s; 
■(-h4 tire piupaiation and 

d e livery rrf m e als ; 
( i ) adoption s e rvic e s ; 
-(-j-)- ei i i e igency sh e l te r car e 

and r e li e f servic e s; 
-Hc-> safe t y servic e s ; 
( 1 ) ne igWborhood and 

community organization 
servic e s ; 
-(-nr^ r e crea t ion s e rvi ce s ; 
-(-n-)- so c ial adjus t men t and 
r e habili t a t ion servic e s; 
■fo^- h e al t il suppor t am vic e s ; 

or 
•(-pr)- a combina t ion of s e rvices 
UesiyiieJ to moot the n ee ds 
of sp e cial gr oups such as 
t+re e ld e rly or liandicapp e d . 
How e v e r , an international 
or g aniza t ion wliich provid e s 
health and w e lfar e servic e s 
overs e as , wh o s e ac t ivi t i e s do 
not r e quir e a local pr e s e nc e 
and which m eet otli er 
e ligibili t y cri te ria, may be 
acc e p te d for participation -in 
the ca i iipaiyn . 
(10) Eligibility for 



682 



NORTH CAROLINA REGISTER 



participation in the campaign 

shall be limited to 

non-part is ian> non-profit 

charitable organizations 

providing traditional health> 

welfare or educational 

services to state employees 
or their families within the 
statewide solicitation area- 
Employees or their families 
should be able to receive 

services from the 

organization. The services 

must consist of care, 

research or education in the 
fields of human health, 

social adjustment , or 

rehabilitation . Additional 

services may include relief 
during times of natural 

disasters or other 

emergencies as well as 

assistance to the needy in 

the form of food, clothing 

and shelter. 

As previously set forth, an 

organization selected by the 

S.E.C.C. Advisory Committee as a 

participant in the Combined 

Campaign must meet the 

Acceptance Criteria . In 

addition to the specified 
criteria, the S.E.C.C. Advisory 

Committee possesses the 

authority to consider additional 
related factors. Such factors 
given consideration by the 
committee include but are not 

limited to present need, 

duplication of e.xisting services 
provided to state employees by 
the State of North Carolina, 
programs, goals and initiatives 
of State government and the 
necessity to limit participation 
of organizations to a reasonable 
and manageable number. 

SECTION .0300 - APPLICATION 
PROCESS AND SCHEDULE 

.0302 RESPONSE 

All applicants will be notified 
of their acceptance or rejection 
within 30 days of the closing 
deadline . Rejections way shall 
be appealed to the campaign 
director within 30 days of 
receipt of the notice of 
reject ion t btrt Response by the 
cn mpaign director to the appeal 
will he m.Tde within n reasonable 
and timely mnnner . An appeal 
will not be allowed to delay the 
start of the campaign. 

TITLE 2 - DEPARTMENT OF 
AGRICULTURE 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the N.C. Gasoline and Oil 
Inspection Board intends to 
amend regulations cited as 2 



NCAC 42 .0102; 

. 0201(a), (b),(c),(d),(f) and 
(g); .0401(a). 

The proposed effective date of 
this action is June 1, 1987. 



Statutory Authority: 
119-26; 119-27; 1508-14. 



G.S. 



The public hearing will be 
conducted at 10:00 a.m. on March 
17, 1987 at Board Room, 
Agriculture Bldg., 1 W. Edenton 
Street, Raleigh, NC . 

Comment Procedures: Interested 
persons may present statements 
either orally or in writing at 
the public hearing or in writing 
prior to the hearing by mail 
addressed to N. David Smith, 
Secretary of the North Carolina 
Gasoline and Oil Inspection 
Board, P.O. Box 27647, Raleigh, 
North Carolina 27611. 

CHAPTER 42 - GASOLINE AND OIL 
INSPECTION BOARD 

SECTION .0100 - PURPOSE AND 
DEFINITIONS 

.0102 DEFINITIONS 

Except as otherwise defined in 
Chapter 119, North Carolina 
General Statutes, the 
definitions frrr fu e l o il, 
gasoline, dies e l fu e l, and 
k e r o sene shall ire t hos e a* s et 
fur t li in D 3 9 0, D - tSg, D 9 75, 
ami D 369 9 , r e sp e ctiv e ly, as 
list e d in ttre 1 9 05 Annual Book 
o^ AGTM Glaiidards, publish e d by 
AGTM, +^+6 Race S t r eet , 
Philadelphia, P e nnsylvania 
19103. in addi t ion, gasolin e 
( leaded vnd unleaded) which 
contains oxyg e na te s no t 
e xc ee din g ■th« limi t s i > e t forth 
in tire U. G . Environmen t al 
Pro te c t i o n Agency' s 

"Substan t ially Gimilar" Rul e , 
S ect i o n 21 1 (f )(1 ) trf -the Clean 
Air Arrt t42 U.G.C. 7545(f)(1)] 
shall ire consider e d tii e -sarire as 
gasoline . applicable in this 
Chapter are as follows: 

For- purposes o-f t+ris Cliapt e r . 

(1) "ASTM" means the American 
Society for Testing and 
Materials . 

(2) "Anhydrous denatured ethyl 
alcohol (ethanol)" means 
nominal 200 proof ethanol to 
which has been added a 
maximum of 5 five volumes of 
approved denaturant ( s ) to 100 
volumes of ethanol and 
containing not more than 1 .25 
percent water by weight as 
determined by ASTM Test 
Method D-203. 

(3) "Approved denaturant ( s )" 



NORTH CAROLINA REGISTER 



683 



means materials used for 
denaturing ethyl alcohol for 
use as a motor fuel which 
have been approved by the 
U.S. Department of the 
Treasury, Bureau of Alcohol, 
Tobacco and Firearms and the 
Director . 

(4) "Board" means the Gasoline 
and Oil Inspection Board. 

(5) "Cetane number" means the 
relative ignition quality of 
diesel fuels by the ASTM 
Cetane Method D-613. 

(6) "Director" means the 
director of the Consum e r 
Standards Division of the 
North Carolina Department of 
Agriculture . 

(7) "EPA" means the United 

States Environmental 

Protection Agency. 

(8) "Gasoline-oxygenate blend" 
means a blend consisting 
primarily of gasolino :<nd a 
substantial amount of one or 



more oxygenates . 



This 



definition includesf but is 

not limited to the following 

designat ions : 

(a) Gasohol meaning any motor 

fuel containing a nominal 10 

volume percent anhydrous 

denatured ethanol and 90 

volume percent unleaded 

gasoline , regardless of 



other 



label, 



designation . 
(b) Leaded gasohol meaning 
any motor fuel containing a 
nominal 10 volume percent 
anhydrous denatured ethanol 
and 90 volume percent leaded 



gasol ine , 



regardless 



of 



other name , label , or 

designation . 

(c) Any gasoline-oxygenate 
blend which meets the EPA's 

"Substantially Similar" 

rule . 

(d) Any gasoline-oxygenate 
blend for which there is an 
existing Clean Air Act 
waiver issued bv EPA. 

(e) Any gasoline-oxvgenate 
blend which is not subject 
to EPA fuel reguirements , 
but for which approval has 
been granted by the Board 
for sale in North Carolina. 

( 7 ) ( 9 ) "Liquefied petroleum 
gas" means any material which 
is composed predominantly of 
any of the following 
hydrocarbons or mixtures of 
same: propane, propylene, 
butanes (normal or 
iso-butane), and butylenes. 

■(*4- (10) "Motor Octane Number" 
means the number describing 
the relative anti-knock 
characteristic of a motor 
fuel determined by ASTM Motor 
Method (D-2700) . 



-t^^ (11) "Octane Index" means 
the number obtained by adding 
the research octane number 
and the motor octane number 
and dividing the sum by two. 
(10) (12) "Oxygenate" means an 
oxygen containing, ashless 
organic compound, wliicl ' i 
con t ains oxygeii such as an 
alcohol or an ether, which 
may be used as a fuel or a 
fuel supplement. 
i^H-i- (13) "Oxygenated fuel" 

means a liquid fuel which is 
a homogeneous blend of 
hydrocarbons and oxygenates. 
This defini t ion includ e s , bu t 
•rs mrt li m i te d t o, 
gasolin e oxyg e na te bl e nds 
under t+re f o llowing 
d e signat iui ' i& . 
(a ) "Grou p i-°- means gasol ii ' i e 
o xy ge na te bl e nds d e fin e d -in 
4-i-)- t hrougli ( iv) vf this 
Gub p aragr apli . 

irirt- "Gasohol" l u e ana any 
mo t or fu e l containing a 
nominal +0 volum e p e i. c e nt 
anhydrous d e iiatui e d 
etliaiiol and 96 volum e 
p e ixeiifc unl e aded gasolin e , 
regardl e ss trf ot h er nam e , 
label , trr designa t ion . 
(ii) "Leaded gasohol" 
m e ans any m ot or fu e l 
containing a no m inal +& 
volum e perc e n t aiiliydrous 
d e na t ur e d etl ' ianol artd 96 
volum e p e rcen t l e aded 
gasolin e . r e gaxdl e ss tyf 
otlier nam e , lab e l , ott 
desiynat iun . 
( iii ) Any gasolin e m et hanol 
bl e nd containing no t more 
t han 5 volumu p e rcent 
methanol wltich also 
includes an e qual volum e 
trf bu t anol trr high er 
mol e cular weigh t alcohol . 
( iv ) Any g asolin e 
oxyg e nat e bl e nd ntrt 
oth er wis e d e fined in tliis 
Chap te r vnd havin g a 
maximu m oxygen con t ent nvt 
gr e at e r than t he oxyg e n 
content trf a blend trf 96 
volum e p e r ce n t gasolin e , 5 
volum e p e rc e n t inetl ' ianol , 
and 5 volum e p e r ce n t 
butanol ■ 
•Hr> "Group O^ m e ans only 

g asoline oxygenat e bl e nd 
whicli do e s mrt m eet thw 
d e finition trf a Grou p i 



fui ' l . 

(12) ( 14 ) "Qualitative word or 
term" means any word or term 
used in a brand name which by 
definition or customary usage 
indicates a level of quality, 
classification, grade, or 
designation . 

(13) (15) "Research Octane 



684 



NORTH CAROLINA REGISTER 



Number" means the number 
describing the relative 
anti-knock characteristic of 
a motor fuel determined by 
ASTM Research Method 
(D-2699). 
(16) "Substantially Similar" 
rule means the U. S . 



Environmental 



Protection 



Agency' s 



Similar" 



"Substantially 



rule , 



Section 



2n(f)(1) of the Clean Air 
Act [42 U.S.C. 7545(f)(1)]. 
i^b^ (17) "Total alcohol" means 
the aggregate total in volume 
percent of all alcohol 
contained in any fuel defined 
in this Chapter. 
(15) (18) "Total oxygenate" 
means the aggregate total in 
volume percent of all 
oxygenates contained in any 
fuel defined in this Chapter. 
(10) "Un c lassifi e d m o to r fuel" 
means any motor fuel tliat 
do e s no t mrr«+ t h e d e finition 
trf tmy m o t o r fu e l defin e d -in 
this Cliapter . 
■(^^4■ (19) "Unleaded" means any 
gasoline or blend of gasoline 
with oxygenates as defined in 
this Chapter containing not 
more than 0.05 grams lead per 
U.S. gallon (0.013 grams per 
liter) and 0.005 grams 
phosphorus per U.S. gallon 
(0.0013 grams per liter). 
ASTM documentg adopted b v 
reference herein are available 
for inspection in the Office of 
the Director of the Standards 
Division and may be obtained at 
a cost as determined bv the 
publisher by contacting ASTM, 
1916 Race Street, Philadelphia, 
PA 19103. 

SECTION .0200 - QUALITY OF 
LIQUID FUEL PRODUCTS 

.0201 STANDARD SPECIFICATIONS 
■i-tr^ Gasoline ami bl e nds o^ 
gasoline wi t h oxyg e na te s a« 
defined -in t his Cliap ter shall b« 
visually fr ee <rf undiss o lved 
water , sedim e nt , and sus pe nd e d 
ma tte r, and shall b« cl e ar and 
bright at t h e ambi e n t 
t empeiatui e or 9^ degre e s F-r -(-2-1- 
degr e es G . ) , which e v e r xs 
higli e r . in addition to me et ing 
all sp e i-if ica t ion r e quirem e n t s 
as set for tli "in this Rule each 
fu e l mus t btj suitable -for ttre 
inn t ended use . 

-f+4^ C orro sion (A.G.T.M. 

D 130) shall be snc+t t+tat a 
cl e an coppur strip subin e rg e d 
t h e r e in fxrc t lir ee hours a-t a 
t empei atui ' u o-f 122 degi ees 
F-r -(-5© degr e es G. ) , wiii 
sliow a sligh t discolora t i o n 
( Classifica t ion Ntrr 1 ) ; 
+*> Sulphur (A.S.T.M. D 1200) 



con te n t may no* e xc ee d 0.10 
p e rc e n t by weigli t -Bov 
pro duc t s d e aiynated as 
"unl e ad e d" and may ntrt 
e xc ee d 0.15 p e rc e n t by 
w e igh t for all oth e r 
pi ' uducta; 
■(-34 Vapor Pr e ssur e and Vapor/ 
Liquid Ra t io . 
■fA> R e id Vapor Pr e ssur e 

(A.S.T.M. D 323) shall ntrt 
m-ed +5 p«i -t+eS kPa> 
January and 
13.3 ps X (93 
F e bruary, 
Oc t ob e r and 
tS p«i +T^ 
May> Jun e , 



exr 

du r in g 

Dec e mb e r ; 

kPa) du r in g 

March, April , 

Nov e mb e r ; -H- 

kPa) dur in g 

July, and Sep te mb er ; 



psx -(-69 kPa) durin g 
Augus t ; 
(0 ) Vap o r/Liquid Ra t io 

(A.G.T.M. D 2533) shall b« 
2^ tr> + maximum and shall 
be te s te d at 4-&5 d e gre e s 
F-r -(-^ d eg r ee s e-r4 durin g 
January and D e c e mb e r ; +-1-6 
degr ee s F-r -(-4^ degr ee s e-r-)- 
during February, March, 
A p ril , October , and 
Novemb e r; +24 degi ee s ¥-r 
■(-5-1- d e gr ee s e-r-)- durin g 
May, Jun e , July, and 
S e pt e mb e r; 1 33 degr ee s F-r 
-(-56 degre e s B-r)- dur ing 
Augus t ; 

•(-r+ A vapor p r e ssur e 
tol e ranc e no t exc ee din g 
one pound per squar e 
inch rray btr allow e d ftrr 
gasoh o l, l e ad e d g as o hol , 
and gasolin e oxygena te 
bl e nds as d ete rmin e d by 
t+re ambi e nt temper a t ur e 
p roc e dur e , A.S.T.M. 
D 323 7 9 ; 
( ii) Va po r Liquid ra t i o 
sp ec ificati o ns for 
gasohol , l e ad e d gasohol , 
and gasoline — oxygenat e 
bl e nds will ire waiv e d 
p e nding dev e lopm e n t erf 
appropria t e te s t m et liods 
by AGTM and subs e quen t 
adop t i o n by t+te board; 
( iii) R e id vap o r 

pressur e and vapo r 
li q uid ra t io s e asonal 
specifications as lis t ed 
■in tliis Subpara g ra p h may 
b« e xt e nded ^oir a 
maxlmuin pe riod rrf +^ 
days -try all ow f or th« 
disbursemen t rrf o ld 
s t o c ks ■ How e ver, new 
s t ocks trf a high e r 
volatility 

classifica t ion shall n ot 
fee off e r e d for sate at 
r et ail pri or to t¥ns 
e ff e ctiv e da te of tho 
higli e r vola t ility 
classifica t i o n ; 
( iv ) A pp lica t ions for 



NORTH CAROLINA REGISTER 



685 



te m p orary e xc e p t ioi ' is tw 
vapur pr e ssur e arrd 
vapor/'li q uid ratio 
sp e cif ic at lulls »s 
provid e d -in t+rrs 
Gubparacjrapli way b« mad e 
try t+re dir e ctor . Gaid 
a p plica t ions shall 
con t ain e vid e nc e 

sa t isfactory iro tire 
director t ha t outle t s 
mark et in g g asolin e -in 
North Ca r olina caiinut 
feasibly ire suppllud 
from bulk te rminals 
f ui i iislili ' ig s pe cified 
v o la t ili t y l e vel 

gasol in e err t+ra-t 
cus t o m ary soui ' c e a trf 
supply have b ee n 
t eiripor ar ily iiit e iiup te d 
by product sho rt age ami 
al te rna te sourc e s 
furnishing s pec ified 
volatili t y lev e l 

g asolin e mre mrb 

availabl e . Gucl ' i 

t em porary e xc e pt luiis 
gi. aiittjd shall a p ply only 
un t il "Hre nex t m eet in g 
trf t+re board at- which 
t im e -Hre board shall 
e stablisli t lTC dur at ion 
o-f ttre e xc e p t ion ; 
4^r)- Exis t ent 6rm (A.G.T.M. 
D 301 ) coi ' iten t may ntrt 
e xc ee d five m illigrams per- 
-?-fr0 millili te rs; 
(5 ) Distilla t ion Rang e 

(A.G.T.M. D 00) s hall be as 
follows . ntrt l e ss t han 4-0 
p e rcent e vaporated a-b 1 ^ 9 
d e gr e es p-r -f&S d e g ree s G . ) ; 
no t mor e t han 5rd- p e rc e n t 
e vaporat e d at- -1-?^ d e gre e s F-r 
■(-T-? dcgreas C . ) ; except t ha t 
■for g asohol , l e ad e d gasol ' iol , 
artd gasolin e — o xyg e na te 
blends , no t mor e t han 5^ 
pe r ce n t shall be e vayor atad 
at: 4-5e degr e es Ft -H^ 
d e gr ee s C . ) ; irotr less t han 
5^ pei ' c e n t evapora te d at &45 
d e gr ee s Ft (110 degi e es C . ) ; 
rtrrt l e ss t han 9^ p e r cent 
e vapoiated at 59A d e gr ee s Ft 
( 1 9 d e gr ee s C. ) ; final 
boiling poin t rro-t m or e t+ran 
^5-? degr ee s Ft ( 225 d e gre e s 
C ■ ) ; re sidu e sliall rttrt 
e xe e ed 2 peicent ; 
(G ) Oc t an e Ra t in g shall be 
at- t+re oc t an e ind e x nrrt l e ss 
than th e valu e cer t ifi e d ort 
t+re brand nam e r e gistration 
as re quir e d fay 2 N€A€ 42 
.0500. 
■HH fctratJ con te n t (A.G.T.M. 
D 3237) -for fuels d e &lijiiated 
as unl e aded shall rtrrt e xce e d 
. 05 grams per U . G . gallon 
(0.013 grams per li te r ) ; 
( ) ri ' iospl ' iorus con te n t 



(A.G.T.M. D 3231 ) -frrr fu e ls 
d e signat e d ns unl e ad e d sliall 
ntrt e xc ee d . 005 grams per 
U.G ■ gallun (D .0013 g r ams 
per li te r ) ; 
■(-9-> Oxyg e nat e Con t en t . Gas 
liquid chr oma t ogr aplilc 
pr oc e dur e s v?ill be 
coi ' isidei. e d as official -foir 
t l - i e d ete rmination erf 
oxygenate conten t . 
(A) Gasohol and l e ad e d 

gasohol sliall contain +0 
p lu s minus 0-t5 volum e 
p e i ' c e nt anhydrous 

d e na t ur e d e thanol . 
-(-B-)- Bl e nds trf gas o lin e artr} 
al co h o ls and/'or o t li e r 
oxygenat e s t nrrt oth e i wis e 
d e fin e d -in t hi s Cl - iap t er , 
may coi - itain, as a maximum, 
the p e i ' c e ntag e artri typ e trf 
uAyg e nate as cer t ifi e d on 
ttre brand nam e 
r e gis t ra t ion as l e ijuli ed 
by 2 N€Ae 42 .0500 subj e ct 
to complianc e witli other 
sp e cifica t ions -ars provided 
■in t his Gubpar agraph; 
(10) Wa t er Toler ' ance s hall 
be su c h t ha t no p has e 
separation occurs when 
subjected to a te mp e ratur e 
e qual to t l - i e low e st e xp e cted 
ambi e n t te mp er atur e bas e d on 
s e asonal vola t ility 

classifica t ions w specified 
-in A.G.T.M. D ^ 3 9 . 
(a) Gasoline shall conform to 



ASTM 



D-439-85a, 



"Standard 



Specification for Automotive 
Gasoline," with the following 
modifications : 

(1) Applications for 

temporary exceptions to 



vapor 



vapor/liquid 



pressure 



and 



ratio 



specifications as provided 
in this Subparagraph may be 
made to the director. Said 
applications shall contain 
evidence satisfactory to the 

director that outlets 

marketing gasoline in North 
Carolina cannot feasibly be 
supplied from bulk terminals 

furnishing specified 

volatility level gasoline or 
that customary sources of 
supply have been temporarily 
interrupted b^ product 



shortage 



and 



alternate 



sources furnishing specified 
volatility level gasoline 

are not available. Such 

temporary exceptions granted 
shall apply only until the 
next meeting of the board at 
which time the board shall 
establish the duration of 
the exception; 
(2) Octane rating shall not 
be less than the octane 
index certified on the brand 



686 



NORTH CAROLINA REGISTER 



registration 



as 



required by 2 NCAC 42 .0500; 

(3) Reid vapor pressure and 

vapor/liquid ratio seasonal 

specifications as listed in 

this Subparagraph may be 

extended for a maximum 

period of 15 days to allow 

for the disbursement of old 

stocks. However, new stocks 

of a higher volatility 

classification shall not be 

offered for retail sale 

prior to the effective date 

of the higher volatility 

classification . 

■(^r)- Unclassifi e d m oto r fu e l 

shall b« fr ee trf undl«.«.olv e d 

wat^r > sadlm e n t > «)Uspeiided 

matt e r arrd coL ' ro a .lv e subs t an ce s, 

and shall m e e t sucli 

sp e cifications as may be 

e s t ablish e d by thw direc t oi: . 

Gu c h sp e cifications sliall be 

binding un t il t h e n e xt m e e t ing 

of tire Board, wt which t im e t h e 

Board shall e stablish 

sp e cifications for t h e mo t o r 

fu e l. 

(b) Gasoline-oxygenate blends 
shall conform to ASTM D-439-85a, 

"Standard Specification for 

Automotive Gasoline," with the 
following modifications: 

(1) A vapor pressure 
tolerance not exceeding one 
pound per square inch may be 
allowed for gasohol, leaded 

gasohol , and 

gasoline-oxygenate blends as 
determined by the ambient 
temperature procedure, ASTM 
D-323-79; 

(2) Vapor/liquid ratio 
specifications for gasohol, 

leaded gasohol , and 

gasoline -oxygenate blends 

will be waived ponding 
development of appropriate 
test methods by ASTM and 
subsequent adoption by the 
board ; 

(3) Reid vapor pressure and 
vapor/liquid ratio seasonal 
specifications as listed in 
this Subparagraph may be 
extended for a maximum 
period of 15 days to allow 
for the disbursement of old 
stocks. However, new stocks 
of a higher volatility 
classification shall not be 
offered for retail sale 
prior to the effective date 
of the higher volatility 
classificat ion; 

(4) Applications for 

temporary exceptions to 

vapor pressure and 

ratio 



vapor/liquid 



specifications as provided 
in this Subparagraph may be 
made to the director. Said 
applications shall contain 



evidence satisfactory to the 

director that outlets 

marketing gasoline in North 
Carolina cannot feasibly be 
supplied from bulk terminals 

furnishing specified 

volatility level gasoline or 
that customary sources of 
supply have been temporarily 

interrupted by product 

shortage and alternate 

sources furnishing specified 
volatility level gasoline 

are not available. Such 

temporary exceptions granted 
shall apply only until the 
next meeting of the board at 
which time the board shall 
establish the duration of 
the exception; 

(5) Distillation Range (ASTM 
D-86) shall be the same as 
specified for gasoline in 
(a) of this Rule except th e 
minimum temperature at 50 
percent evaporated shall be 
158 degrees F. (70 degrees 
C); 

(6) Octane rating shall not 
be less than the octane 
inde.x certified on the brand 

name registration as 

required by 2 NCAC 42 .0500; 

(7) Oxygenate Content. Gas- 
liquid chromatographic 



procedures 



will 



be 



considered as official for 

the determination of 

oxygenate content . 

(A) Gasohol and leaded 
gasohol shall contain 10 

plus/minus . 5 volume 

percent anhydrous 

denatured ethanol . 

(B) Gasoline-oxygenate 
blends not otherwise 



defined in this Chapter, 
may contain, maximum or 
minimum as appropriate, 
the percentage and type of 
oxygenates as certified on 

the brand name 

registration as required 
by 2 NCAC 42 .0500, 
subject to compliance with 
other specifications as 

provided in this 

Subparagraph; 
(8) Water tolerance shall be 
such that no phase 



separation 



when 



subjected to a temperature 
equal to the lowest expected 
ambient temperature based on 

seasonal volat il itv 

classifications as specified 
in ASTM D-439-85a. 
(c) Diesel motor fuel mus t 
mee t shall conform to ASTM 

D-975-81 , "Standard 

Specification for Diesel Fuel 
Oils," with the following 
specifica t ions modifications ! 
for diesel motor fuel number 



NORTH CAROLINA REGISTER 



687 



2-Dt a minimum flash point (ASTM 
D-56) of 115 degrees F. (46 
degrees C . ) . 

■H-i- Nu m b er ^— B-r 

-eA4 Flash po int (A.G.T.M. 
D 56) ■ +ee d e gr ee s F^ -(-36 
U e yi ee s C . ) minimum; 

■tB-)- Wa te r and s e diment 

(A.G.T.M. B- 17 9 6) . Bt^S 
perc e n t by volum e maximum; 

(G ) Ca r b o n r esidue on +& 
p e r ce n t re siduu m (A.G.T.M. 
D 524) . ^7-1-5 p erc e nt 
maximum ; 

■(-B^ Dis t illa t ion 

te mp e ra t ur e at- 9© p e rc e n t 
e vapora te d (A.G.T.M. 
D06) : 55^ degr e es Fr 
( 200 d e grees e-r4 maximum; 

■f£4 Viscosi t y at +0^ 

degrees Pr ( 30 degre e s 6-r-)- 
-in Cen t is t okes (A.G.T.M. 
D 445 ) . 4-r5 m inimum and 
2 . 4 maximum; 

■H=^ Corr o sion (A.G.T.M. 

D 130) ■ When a cl e an 
copper s t r ip -irs submerged 
■for tliiee hours at- +&2 
degr ee s F-r 4-50 de g r ee s C . ) 
discolora t ion sliall no t be 
darker than classifica t ion 
No . ztT 

-fe-)- C et an e nu m b er (A.G.T. M . 
fi — 613): 40 mini m um ; 



■f^H Gulphur (A.G.T.M. D 12 9 
and D 1206) : .50 pe rc e n t 
by w e i g h t nia.ximum; 
■(^^ Numb er 2-B-r 

■fA> Flash poin t (A.G.T.M. 
D 56) . ++5 de g rees Ft -(-46 
d e gre e s C . ) minimu m ; 

(D ) V ' ^ater and sediment 

(A.G.T.M. D 1796) . e-rBS 
p e rcen t by volu m e maximuiu; 

(0 ) Carb o n residu e on -1-9 
percen t r e siduu m (A.G.T.M. 
D 524) . 0.35 p er c e n t 
maximu m ; 

■(-B4 DiLitilla t ion 

t e mp e ra t ur e at 90 p e rc e n t 
e vapora te d (A.G.T.M. 
D 06) ■ 640 degr ee s Ft 
( 330 d e gr ee s 6-r-> iiiaximui n ; 

■t€4 Visc o si t y atr +00 

d e grees Ft -ir^Q degre e s e-r4 
•in Cent istuk e s (A.G.T.M. 
D 4 45) : +T-9 winin .pm-r 



m aximum; 
( F ) Corr o si o n 
(A.G.T.M. B- 
cl e an 



Te s t 
130) 



r n 

rfnen 



a 
co p pe r strip -rs 
submerged t h e r e in for a 
period o-f t hr e e liuur s at a 
tempe ratur e rrf -1-&2 degr e es 
Ft -(-50 degr ee s B-r^ t+re 
discol o ration shall bw rro 
dark e r t han classifica t ion 
Nttt 3-r 
(G ) Ce ban e number (A.G.T.M. 

D 613) 40 iiL i i-L i muui 
-HH Gul p hu r (A.G.t!m. D 12 9 
antJ D 1260) .50 p e rc e n t 
by w e igl - [t maximu m . 
(d) Fuel oil shall conform to 



tbe followliig s pe cif icatluiis ■ 

ASTM D-396-84. "Standard 

Specification for Fuel Oils." 
-(^^ Numb e r +t A distillat e 
orri in te nd e d -for vapor i.Lliig 
pot — typ e and similar 
burn e i ' s ■ 
■(tM- Flash po in t (A.G.T.M. 

D 56) +00 degr ee s Ft -(-56 

d e gi e es e-r-> mini m um; 
-(-B-)- Wa te r and s e dim e n t 

(A.G.T.M. D 1796) Trac e ; 
-(-G^ Carbon r e sidu e on -1-0 

p er c e n t i e slduum (A.G.T.M. 

D 52 4 ) 6t+5 pe rc e n t 

maximu m ; 
■f©^ Distilla t ion 

te mperatures (A.G.T.M. 

D 06) -1-0 pe rc e nt 

e vapora te d 4S0 d e gr e es Ft 

(216 degi e e s C . ) maximum; 

90 p e rc e n t e vaporated . 

550 d e gr ee s Ft (200 

degr ee s G-r-)- maximum; 
■t€4 Gravi t y (A.G.T.M. 

D 207) 55 degr e es ftPf at 

60 degr e es Ft minimum; 
<rF^ Gul p hu r (A.G.T.M. D 12 9 

mr^ 1266) .50 p e rc e n t fay 

w e i g h t ii iaxi i uum ■ 
-(-2-)- Numb e r 2-r ft dis t illa te 
o-ii ftJT g e n e ral pur po s e 
dom e s t i c h e ating frrr us e -in 
burner s not r e quiring numb er 

■HH- Flash po in t (A.G.T.M. 
D 56) ++5 degr e es Ft -^46 
d e gre e s G-r^ i r iinimum; 

•fB-)- Wa ter ami sedimen t 

(A.G.T.M. D 1796) 0-r&5 
perc e n t by volum e maximum; 

■fG-J- Carbon residu e on -1-0 
p e rcen t r e siduum (A.G.T.M. 
D 524) .35 p e rc e n t 
maxi m u m ; 

■(r&^ Distilla t ion 

t e mp e ratur e (A.G.T.M. 
D 06) 90 perc e n t 
e vapora te d 640 d e gr ee s Ft 
( 330 d e gr e es G-r^ l uaxli i ium; 

■(t+ Gravity (A.G.T.M. 

D 207) 50 de g r ee s AFi at 
60 d e gr ee s Ft minimum; 

-fF^ Gulphur (A.G.T.M. D 129 
and 1266) .50 perc e nt by 
w e ight maximum . 

(f) In addition to meeting all 
specification requirements as 
set forth in this Rule, each 
fuel must be suitable for the 
intended use. 

(g) ASTM documents adopt by 
reference herein are available 
for inspection in the Office of 
the Di'-ector of the Standards 
Division and may be obtained at 
a cost as determined bv the 
publisher bv contacting ASTM> 
1916 Race Street, Philadelphia, 
FA 19103. 

SECTION .0400 - DISPENSING 
DEVICES AND PUMPS 



688 



NORTH CAROLINA REGISTER 



.0401 LABELING OF DISPENSING 
DEVICES 

(a) For the purpose of product 
identltyf each dispensing device 
used in the retailing of any 
motor fuel shall be plainly and 
conspicuously labeled with the 
following: 

(1) for gasoline, the 
registered brand name; 

(2 ) -for gas o li o l imd l e ad e d 
gasoh o l , e itli e r t h e 
r eg is te i -e d brand iiaw e which 
includes t+t« w o rd "gasohol" , 
vr t he r e gis t ered brand nam e 
plus th e phrase "Con t ains 
E t lianol" or som e e quivalen t 
phras e ; 

<^^ ill for diesel fuel, the 
registered brand name plus a 
descriptive or generic label 
if the registered brand name 
does not adequately identify 
the type and/or grade of 
product ; 

( ^ ) (3 ) for gasoline-oxygenate 
blends containing at least 
one percent by volume of 



ethanol , 



methanol , 



combination, the registered 
brand name plus an 
additional label »s f o ll o ws 
which states that the blend 



"contains 



"contains 



alcohol , " 



ethanol , " 



"methanol," or "contains 



ethanol/methanol . " 



The 



label shall be composed of 
letters at least one inch in 



height 



which 



contrast 



distinctly with the label 
background and shall be 
affixed to the dispenser 
front panel in a position 
clear and conspicuous from 



the 



driver' s 



posit ion ■ 



Exceptions to this Rule are: 
(A) for Grou p i fuels — a 
not covered by an EPA 



the 



addit ional 



label sta t ing that shall 
identify the fuel con t ains 
alcohols or o t li er 
o xyg e na te s , f o r e xa m pl e , 
M e thanol" , 
Alcohol", 



"Contains 
tins 



"Con t aj 
"Con t ains Oxyg e nates" rrr 
e quival e n t 



some 
id e nt i 



f ying phi ase percent 
olume of ethanol 



and/or methanol in the 
blend . 
(B) for Group H fuels — a 

meeting the EPA' s 

"Substantially Similar" 

rule and which do not 

contain ethanol or 

methanol, no additional 
label id e n t ifying the type 
and perc e ntage r^f e acli 
o xyg e na te irt the bl e nd 
t ha t -irs +& pe r ce n t or mor e 
«rf t+re tot al oxyg e na te 
cont e iit , for e xampl e , 



"Contains 4-0 p e rc e nt 
M et hanol, 5 p e rc e nt 
Du t anol" , "Contains +2 
pe rc e nt Clltaitul" or -some 
e qually e xplici t phras e vs 
appropriat e is required. 

TITLE 4 - DEPARTMENT OF COMMERCE 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the State Banking 
Commission intends to amend 
regulation cited as 4 NCAC 3C 
.1001(4). 

The proposed effective date of 
this action is June 1, 1987. 

Statutory Authority: G.S. 
53-104; 53-110. 

The public hearing will be 
conducted at 10:00 a.m. on March 
18, 1987 at Room 6168, Dobbs 
Building, Raleigh, N. C. 

Comment Procedures: Written 
comments may be sent to Office 
of State Banking Commission, P. 
0. Box 29512, Raleigh, N.C. 
27626-0512. Requests for 
opportunity to present oral 
testimony and summary of 
testimony must be received at 
this address by March 2, 1987. 

CHAPTER 3 - BANKING COMMISSION 

SUBCHAPTER 3C - BANKS 

SECTION .1000 - LOAN 

ADMINISTRATION AND LEASING 

.1001 CREDIT INFORMATION 
(4) A certificate of title 
furnished by a competent 
attorney at law or title 
insurance issued by a company 
a ppro v e d licensed by the 
Commissioner of Banks Insurance 
must accompany each deed of 
trust or mortgage given as 
security on loans of te n twenty 
thousand dollars (010, 000 . 00 ) 
($20,0()0 .00) or over. The 
foregoing shall not apply over 

the original term of an 

extension of credit in the event 
a bank, which had extended such 
credit prior to October 22, 
1986, based on the borrower's 
creditworthiness and projected 
income, subseguently takes a 
deed of trust or mortgage on the 
borrower's principal or second 
residence . 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the Nortn Carolina Milk 
Commission intends to amend 
regulations cited as 4 NCAC 7' 
.0508 (f), (g) and (h). 



NORTH CAROLINA REGISTER 



689 



The proposed effective date of 
this action is June 1, 1987. 



Statutory 
106-266.8 
106-266.12. 



Authority : 
(3), (7), 



G.S. 
(10); 



The public hearing will be 
conducted at 10:00 a.m. on 
February 24, 1987 at Room 3137, 
Dobbs Building, "430 N. Salisbury 
Street, Raleigh, N.C. 

Comment Procedures: Data, 
opinions and arguments 
concerning these amendments must 
be submitted by March 16, 1987, 
to the North Carolina Milk 
Commission, 430 North Salisbury 
St., Raleigh, NC 27611, Attn: 
Grady Cooper, Jr., Executive 
Secretary . 

CHAPTER 7 - MILK COMMISSION 

SECTION .0500 - MARKETING 
REGULATIONS 

.0508 METHOD OF SETTLEMENT 

-(-f-> An associa t ion trf 
produc e rs may l e imburs e 
proc e ssors ■bo wli om they s e ll 
milk, or a proc e ssor may m ak e n 
d e duction fr om an individual 
producer from wj'iom m ilk "xs 
p urcl i ased, for t+re following 
s e rvic e s and cost savin g s at- th e 
rates lifted . 

( 1 ) fi e ld s e rvic e s . four 
cents (00.04) per 
hundr e dw e i g h t ; 

(2 ) te s t ing for bu tte r fa t , 
bactei la and antibiotics 
three c e n t s (00 .03) per 
hundr e dw e igh t ; 

( 3 > pr e par ing and com p ilin g 
rece i pt s, payrolls, filing 
repor t s tcn^ pr e par in g ch e cks 
t lir ee cents (00.03) p e r 
hundr e dw e ight ; 
■W4 cos t savin g s "bo an 

association or an individual 
producer r e sul t ing from t h e 
r e c e iving rrf milk on t h e 
basis rrf produc e r weiglits 
and t ests nin e c e nts ( 00 . 9 ) 
pe r hundr e dw e ight ; 
■f-54 cos t savings trr an 

association or an individual 

producer resulting from 

r e c e ivin g m ilk on a uniform 

basis t hr ee ce i its (00.03) 

pe r h^^^dr edw e i g ht . 

Prior ■bo r e c e iving a 

r e imburs em ent from an 

association of pro duc e rs , a 

vjL It t e n agi e e i i ieiil b et w ee n t+re 

processo r and t h e associa t i o n o-f 

piodui-ei s mus t be on file wi t li 

the p rocessor iden t ifying t hos e 

services and c o s t savings wlii c h 

will be perform e d by -the 



processor bo whom such 

associa t ion s e lls . 

Prior t-o making a d e duc t ion 
from an indlv idual p ro duc er , a 
proc e ssor mus t liav e a w r i t t e n 
author izat ion fr o m such produ>. e r 
id e ntifying t h e s e rvices and 
c os t savings which will be 
perform e d by the proc e ssor bo 
wliom such produc e r s e lls . 

Th e commissiun sliall v e i ' ify 
t ha t the sp e cific s e rvic e s vmi 
c os t savings ar e p e rform e d -frrr 
t h e re imburs e m e n t mad e by an 
association of produc e rs or for 
■the d e duc t ion mad e f ro m an 
individual produ cer . 

for purpos e s of t his 
subsec t ion , th e cos t savings 
re sul t ing fro m r e c e iving milk on 
•the basis of pj.oduc e r w e ights 
and bu tt crfa t t e s t s shall wean 
t+re proc e ssor shall acc e p t th e 
farm tank w e igh t t ick et s for 
individual produc e rs and fhe 
butt e rfa t te sts resul t ing f r om 
•the sampl e drawn at- th e t im e of 
p ickup . Cos t savings r e sulting 
from r e c e iving milk on a unifor m 
basis shall m e an t ha t t+re 
proc e ssor shall acc e p t milk on a 
r e gular basis at agr ee d t im e s of 
delivery s e v e n days per w ee k; 
p rovided, shipm e n ts fr om 
individual produc e rs may be on 
vn e v e ry oth e r day d e liv er y 
basis . 

(f) An association of 
producers or a business entity 
marketing milk on behalf of 

producers may reimburse 

processors to whom thev sell 
milk, or a processor may make a 
deduction from an individual 
producer from whom milk is 
purchased, for the following 
services and cost savings at the 
rates listed; 

(1) receiving producer milk 
on the basis of weights 

determined from the 

measurement at the farm 
five cents ($0.05) per 
hundredweight , 

(2) receiving producer milk 
on the basis of butterfat 
tests determined from farm 
bulk tank samples - five 



cents 



($0.05) 



per 



hundredweight , 

(3) receiving producer milk 
on a regular seven day per 

week delivery schedule 

including deliveries on 

weekends and holidays - 
three cents ($0.03) per 
hundredweight , 

(4) purchasing milk from an 
association of producers 
based upon a preordered 
specified minimum daily 



volume for 



designated 



period of not less than a 
month; provided , no 



690 



NORTH CAROLINA REGISTER 



reimbursement shall be made 
on the daily volume of 
deliveries which exceeds the 
specified minimum daily 
volume or on any portion of 
the daily volume when the 
deliveries fall below the 
minimum specified daily 
volume - seven cents ($0.07) 
per hundredtveietht , 
(5) performing butterfat, 
bacteria and antibiotic 



tests 



for 



individual 



producers or members of a 
producer association - three 

cents ($0.03) per 

hundredweight , 
(6) preparing and compiling 
receipts, payrolls, filing 

reports , and preparing 

payroll checks on behalf of 
a business entity marketing 
milk on behalf of producers 
three cents C$0.03) per 
hundredweight . 
(g) Prior to receiving a 

reimbursement from ajx 

association of producers, or a 
business entity marketing milk 
on behalf of producers, a 
written contract containing the 
provisions specified in (h) of 
this Rule shall have been 
e.xecuted botvjoon such processor 
and an association of producers 
and a business entity marketing 
milk on behalf of producers. 
Such executed contract must be 
filed with and approved by the 
commission . 

Prior to making a deduction 
from an individual producer by a 
processor, a written contract 

containing the provisions 

specified in (h) of this Rule 
shall have been executed between 
such processor and a producer. 
Such executed contract must be 
filed with and approved by the 
commission . 

The commission shall verify 
that the specified services and 
cost savings as contained in the 
contract are performed for the 

reimbursement made by an 

association of producers or for 
the deduction made from an 
individual producer. 

(h) The contract reguired in 
(g) of this Rule shall contain 
the following provisions and 

shall specify the method 

utilized for compensation for 
services performed, whether by 
deduction or reimbursement: 

"AGREEMENT REGARDING 



PERFORMANCE 



OF 



AND 



COMPENSATION FOR COST SAVINGS 

( 1 ) It is agreed that 

(processor) will perform the 
following services for or 
effect the following cost 
savings on behalf of 



marketing milk on behalf of 

producers ) ; and that 

(producer/ business entity 

marketing milk on behalf of 

producers ) agrees to 

compensate or reimburse 



(processor ) 



for 



such 



services and/or cost savings 
at the following rates: 

(A) receiving producer milk 
on the basis of weights 

determined from the 

measurement at the farm - 
cents per hundredweight, 

(B) receiving producer milk 
on the basis of butterfat 
test determined from farm 
bulk tank samples 
cents per hundredweight, 

(C) receiving producer milk 
on a regular seven day per 
week delivery schedule 
including deliveries on 
weekends and holidays 
cents per hundredweight, 

(D) purchasing milk from an 
association of producers 
based upon a preordcred 
specified minimum daily 
volume for a designated 
period of not less than a 
month ; provided, no 



reimbursement 



shall 



be 



made on the daily volume 
of deliveries which 



exceeds 



the 



specified 



minimum daily volume or on 
any portion of the daily 
volume when the deliveries 
fall below the minimum 
specified daily volume - 
cents per hundredweight, 
(E) performing butterfat, 
bacteria and antibiotic 



tests 



for 



individual 



producers or members of a 
producer association 
cents per hundredweight, 
(F) preparing and compiling 
receipts, payrolls, filing 
reports, and preparing 
payroll checks on behalf 
of a business entity 
marketing milk on behalf 

of producers - 

cents per hundredweight. 
(2) In no instance shall said 
services performed or cost 
savings so effected b.v 
(processor) be compensated 
or reimbursed by 



(producer/business entity 

marketing milk on behalf of 
producers) at a rate which 
exceeds those specified by 
the North Carolina Milk 



Commission Rule 



NCAC 



(producer/business 



entity 



■0508(f) ." 

TITLE 10 - DEPARTMENT OF 
HUMAN RESOURCES 

Notice is hereby given in 



NORTH CAROLINA REGISTER 



691 



accordance with G.S. 150B-12 
that the Office of the Secretary 
intends to amend regulations 
cited as 10 NCAC IB .0201 
.0202; .0206; .0208-. 0213 
.0215; and .0216; .0219; .0220 
.0222-. 0224; and adopt 10 NCAC 
IF .0401-. 0407. 



The proposed effective date of 
this action is June 1, 1987. 

Statutory Authority: 143-127.2; 
143B-10; 1985 Session Laws; 
150B; Article 3. 

The public hearing will be 
conducted at 9:00 a.m. on 
February 18, 1987 at Albemarle 
Building, Room 420, 325 North 
Salisbury Street, Raleigh, North 
Carolina 2761 1 . 

Comment Procedures: Interested 
persons may present written 
and/or oral comments at the 
public hearing. Oral 
presentations may not exceed 10 
minutes. Persons wishing to 
offer comments at the public 
hearing should contact Victoria 
Voight at 325 North Salisbury, 
(919) 733-6920 by February 16, 
1987. The hearing record will 
remain open for the submission 
of written comments from January 
19, 1987-February 18, 1987. 
Written comments must be sent to 
Victoria Voight at the above 
address by February 18, 1987 and 
must state the proposed rule(s) 
to which they refer. 

CHAPTER 1 - DEPARTMENTAL RULES 



SUBCHAPTER IB 
SECTION .0200 



PROCEDURES 
CONTESTED CASES 



.0201 DEFINITIONS 

The following terms shall have 
the following meanings unless 
the context of the rule requires 
a different interpretation: 

(2) "hearing" means a 
contested case hearing as 
provided in G.S. 150 A B 
-2(2) and 150 A B -23; 

(3) "hearing officer" means: 

(a) a departmental hearing 
officer(s) appointed by the 
secretary or his/her 
designees; or 

■Hj-> Chi e f H e arin g Offi cer 
trf -Htc eAHr 

(b) a hearing officer 
appointed by the director of 
the OAH; 

.0202 REQUEST FOR 

DETERMINATION 

(a) In accordance with 150 
A B -2(2), any person may 
request a determination of 



his/her l eg al rights, 
privileges, or duties as they 
relate to laws or rules 
administered by the department. 
AH r e qu e sts mus t be -in wri t ijig ' 
arrd con t aiji n s t at e m e n t tyf ttre 
f acti promyiliiy t he reque&l , 
suf f iciciit -to all o w for 

ai^pvopi ' iat e pr jc e &siiig by ttre 
d e par t m e nt . 

(b) Any person seeking such a 
determination must exhaust all 
informal procedures available 
before requesting a hearing 
under t+re following rul e s unl e ss 
n moi e sp e cific pr oc e dur e -rs 
citli e i wise specifi e d -in t+re 
following cliap t ers . G.S. 
150B-23. 

(c) All petitions for hearings 
regarding matters under the 
control of the Department shall 
be filed with the OAH in 
accordance with G.S. 150B-23 and 
26 NCAC 3 .0003. The petition 
shall be filed within 30 days 
after the petitioner receives 
notice of the action being 
appealed unless a different time 
limit is specified in another 
applicable rule or letter of 
notification of adverse action. 
In accordance with G.S. 1A-1, 
Rule 4 (i) 4, the petition shall 
be served on a registered agent 
for service of process for the 



department ■ 



list 



of 



registered 



agents 



may 



be 



obtained from the Office of 
Legislative and Legal Affairs, 
(d) To obtain a departmental 

hearing , the petition for 

hearing filed with the OAH must 
include a waiver of the right to 
a hearing conducted by the OAH. 
If the department initiates the 
contested case, the respondent 



may 



obtain 



hearing by filing 



departmental 



written 



waiver of the right to an OAH 
hearing with the OAH within 15 
days after being served with the 
petition for hearing. 

(e) Departmental hearings 
shall be conducted in accordance 
with the rules contained in this 
Section unless another procedure 
its specified for the hearing in 
the following chapters. 

.0206 NOTICE OF HEARING 

Upon receipt of a valid 
1 uqu e s t petition for hearing in 
which a departmental hearing has 
been reguested, the department 
shall schedule the matter for 
hearing without undue delay. At 
least 15 days prior to the 
hearing date, the hearing 
officer shall issue a notice of 
hearing to all parties that 
complies with G.S. 150B--23(b). 



The 
'1 ) 



notice shall include: 

a statement of the date. 



692 



NORTH CAROLINA REGISTER 



hour, place and nature of the 
hearing; 

(2) a reference to the 
particular sections of the 
statutes and rules involved; 

(3) a short and plain 
statement of the factual 
allegations; and 

(4) the name of the hearing 
officer assigned. 

-(-54 no t ifica t ion <yf t h e 

par t y' s righ t to r e qu e s t an 
0AH hearing atitd t li e proc e dui e 
for making a reques t -in 
a cc ordanc e wi t h G.G . 150A 32 
(a1). 

.0208 INTERVENTION 

( a) Th e mod e l rul e on 
iniei ' v e n t i o n adop te d by thw 
Nor t h Carolina D e par t m e n t of 
Jut.t ice on Gept e niber S':^^ 1 9 00 , 
and codified as 25 NCAC 2€ .0304 
■irs he re b y adop te d by ref e renc e . 
in a p plying t liis Rul e , t li e term 
"presiding offic e r" shall moan 
hear ing offic e r . 

■Hr> C op i e s of 22 N€Ae 
26 . 0304 Btay bo inspected -in t+to 
Offic e of Legal Services , 
Depji. tmenl of Ituman Resources, 
525 Nor t h Salisbury Street , 
Raleigli, Nor t h Carolina . Copi e s 
may bo obtained fro m t+to 
Administra t iv e ProccduLes 
Sec t ion of tho Office of t+re 
At t orn e y Genei al , +6 Cas t Jones 
Gtieet , Ral e igli, Nor t h Carolina . 

(a) Any person desiring to 
intervene in a contested case 
conducted in accordnnce v;ith the 
rules contained in t his Section 
must file a written motion to 
intervene with the hearing 
officer in a timely manner an d 
shall serve copies of the motion 

on all parties to the 

proceeding ■ 

(b) The motion shall include 
the following information: 

C 1 ) the name and address of 
the movnnt ; 

(2) the business or 
occupation of the movant if 
relevant ; 

(3) identification by case 
name and docket number of 
the proceeding in which the 
movant seeks to intervene; 

(4) any statutory basis under 

which the movant is 

qualified to intervene; 

(5) facts demonstrating that 
the movant's riglits, duties, 

privileges , or other 

substantial interests may be 
affected by the proceeding; 

(6) the claims or defenses 
for which intervention is 
sought ; 

(7) a summary of the 
arguments or evidence that 

the movant wishes to 

present . 



(c) Any party may object to 
the motion to intervene by 
filing a written notice of 
objection with the hearing 
officer within 10 days after 
receipt of the motion and 
serving copies of the notice of 
objection on all other parties 
and the movant. The notice of 
objection shall state clearly 
the grounds for the objection. 

(d) The hearing officer shall 
determine whether to allow 

intervention and, if 

appropriate, the extent to which 
the intervener may participate 
in the proceeding. The hearing 
officer shall then issue an 
order granting or denying the 

motion , specifying any 

limitations on the intervention 
and stating the reasons for the 

ruling . Copies of the order 

shall be served on all parties 

and the movant . The hearing 

officer may amend the order for 
good cause. 

.0209 WRITTEN ANSWER 

-(-a4 Any party who has received 
a notice of hearing may file a 
written answer. The answer must 
be mailed to all other parties 
and the hearing officer not less 
than 10 days before the date set 
for hearing. and nus fc b^ 
r ec e ived by tho hearin g offic er 
a-t l e ast 9- days b e fore t h e dat e 
■Etrt foT li e ar ing . 

-Ho4 Any par t y may lequ e st 
t+ra-b t+re I ' lear ing be conduc te d by 
an 6AH I ' lear ing offic e r rather 
t lian a d e par t men t al h e a r in g 
offic e r by includin g such a 
r e qu e s t -in tho aiiswei . Abs e n t a 
t im e ly r e qu e s t for an OAH 
hear ing officer , tho hearing 
w ill bo cuitducted by a 
depar t m e ntal 1 - i e ar in g o ffic e r . 

( c ) Upon rec e ip t of a timely 
requ e st for an 0AH liear ing 
u f fle e r , t+rc depar t m e n t shall 
r e quest t lia t t he Chi e f H e aring 
Offic e r of ©AH assign a h e arin g 
offic e r to conduct ttto li e ar ing . 

.0210 VENUE 

■fa-)- Tho model rul e on v e nu e 
adop t ed by tho North Carolina 
Department of Jus t ic e on 
Septemb e r 29-r 1 9 00, and codified 
as 22 NCAC 2€ . 0305, -is Imr e by 
inc o rporated by re fer e nc e . fn 
applying t his Rul e , tho torn 
"presiding officer" shall mean 
tlie hearing off icei . 

-Hr^ Copi e s of 22 NCAe 
2G . 0305 may bo iiisp e i-L e d -in ttto 
Offi ce of Legal Servic e s , 
D e par t men t of Human Resoui cus , 
3-25 Nurtli Salisbury Str e e t , 
Ral e igh , Nortli Cai olina . Copies 
may be ob t ained from -tho 
Adminis t ra t iv e Proc e dui u Sec t ion 



NORTH CAROLINA REGISTER 



693 



«rf t li e Offic e «rf t h e At tui ii e y 
General , +& Cast Jon e s G t i. ee l , 
Ral e igh, Nurtli Car o lina . 

(a) Any party desiring a 
change of venue shall file a 
written motion for a change of 
venue with the hearing officer 
and serve copies of that motion 
on all other parties at least 10 
d ays prior to the date for which 
the hearing is set . 

(b) The motion shall include 
the following information: 

( 1 ) the name and address of 
the movant ; 

(2) identification by the 
case name and docket number 
of the proceeding for which 
the change is sought; 

(3) the time, date, and place 
for which the hearing is 
scheduled; 

(4) the county in vfhich the 
party requests that the 
hearing be held; and 

(5) a statement of the 
reasons for the requested 



change, including 


the 


names 


and addresses 


of 


any 



witnesses whose convenience 

represents the basis for the 

request . 

(c) any party may object to a 

motion for a change of venue by 

filing a written notice of 

objection vjjth the hearing 

officer within five days after 



receipt 



of the 



motion and 



serving copies of the notice of 
objection on all other parties. 
The notice of objection r;hall 



stat 



the 



e clearly the grounds for 
ob ject ion . 



(d) The hearing officer shall 
determine whether a change of 
venue is appropriate and shall 
issue an order granting or 
denying the notion. The order 
shall state the reasons for the 

decision . Copies of the order 

shall be served on all parties. 

.0211 DISCOVERY 

(a ) The m o del rul e on 
discovery adop te d by -thv North 
Carolina Department rrr JtfS.t ic e 
OTt Sep te mber &9-r 1900, and 
codifi e d a« S2 N€Ae 2€ .0307, -rs 
h e reby liicorporatcd by 
r e f e r e nc e . in a p plyin g t his 
Rule, t+re t er m "pi esidiri g 
officer" shall mettn t+te h e ar ing 
o ffi c er . 

-rtr> Copi e 
£€ .0507 
■Hre Offic e 

3^5 N ort h 



r of S2 N€Ae 
may ire ins pecte d in 
of Legal G e i vic e s , 
xrf Human Resourc e s , 
Gal isbury S t r eet , 
Ral e i g h , Nor tli Cjrol ina . C o pi es 
nrtry be obtain e d from t^re 
Adminis t rativ e Proc e dur e s 
Sec t ion of t+re Office erf t+re 
Attorn e y G e n e ral , +0 Cas t Jon e s 
St ree t , Ral e igh, N o r t h Carolina . 



(a) parties in contested cases 

shall exchange information 

voluntarily, seek access to 
public documents as provided bv 
law, and exhaust other informal 
means of obtaining discoverable 
material . 

(b) Within 30 days after 
receipt of a request for 
discovery or within such other 
time limit as the hearing 
officer may set, the party from 
whom discovery is requested 
shall either: 

(1) provide the requested 
material or access to that 
material to the discovering 
party; 

( 2) provide a schedule for 
compliance with the request 
for discovery; or 

(3) file a written motion 
with the hearing officer for 
relief from the request for 
discovery . 

(c) Any dispute regarding 
discovery shall be referred to 



the 



hearing 



officer 



for 



resolution. The hearing officer 
shall issue an order resolving 
the dispute and containing the 
reasons for the ruling. Copies 
of the order shall be served on 
all parties . 

.0212 PRE-HEARING CONFERENCE 

(a) Upon notice to all 
parties, the hearing officer may 
reques t that instruct the 
parties to participate in a 
pre-hearing conference. 

.0213 SUBPOENAS 

( a ) The model I'ule on 
subp oe nas adopt e d by t h e North 
Carol ina D e par t m e n t trf Justic e 
on September 29-r 1900, and 
codifi e d ais 22 NCAG 2€ .0300 irs 
h e r e by inc o r p ora te d by 
rvf ej. enc e . in applying t his 
Rule , t+re t e rm "pr e sidin g 
o ffic e r" shall m e an h e ar ing 
offic e r . 

-H34 Copi e s of 22 NGAG 
2€ . 0300 nray be insp e c te d in -the 
Offic e of L e gal S e rvic e s, 
Departm e n t of Human R e sources, 
325 Nor t il Salisbury S t re et , 
Ral e igh , N- or t h Carolina . Copi e s 
may be obtain e d from t+te 
Admin is fa r at iv e Procedur e s 
Sec t ion of -Hre Office of "the 
Attorney Gener al , -1-0 Cas t Jones 
Street , Ral e igh, North Carolina . 

(a) Requests for subpoenas 
sh all be made to the hearing 



officer 



in writ ing . 



The 



roguosts must be filed witl^in a 
reason.ible time after the need 
for the subpoena becomes evident 
to the requesting party. 

(b) A request for a subpoena 
shall contain the following 
information : 



694 



NORTH CAROLINA REGISTER 



(1) the full name, the home 
and business addresses, and 

the home and business 

telephone numbers of 

personC s ) or specific 

identification of the 

document (s) or category of 
documents to be subpoenaed; 

(2) identification by case 
name and docket number of 
the proceeding for which the 
subpoena(s) is sought; 

(3) a brief statement of the 
potential relevance of the 
testimony or the documents 
sought ; 

(4) the time, date, and place 
for responding to the 
subpoena . 

(c) Subpoenas shall be served 
as directed by the hearing 
officer and as appropriate to 
the circumstances of the case. 
Methods of service may include 
service by an employee of the 
agency or any method set out in 
G.S. 1A-1, Rule 45. The cost of 
service, any fees and expenses 
of subpoenaed witnesses shall be 
paid by the party reguesting the 
subpoena . 

(d) Any person receiving a 
subpoena may object to the 
issuance of the subpoena by 
filing a written notice of 
objection with the hearing 
officer within 10 days after 
receipt of the subpoena and 
serving a copy of the objection 
on the party that requested the 

subpoena . The notice of 

objection shall state the 

reasons why the subpoena should 
be revoked or modified. 

(e) The hearing officer shall 
determine the appropriateness of 
the subpoena and shall issue an 
order upholding, modifying, or 

revoking the subpoena. The 

order shall contain the reasons 
for the decision. Copies of the 
order shall be served on the 

party that requested the 

subpoena and the person that 
objected to the subpoena. 

.0215 STIPULATIONS 

The parties -in a con t es te d caa e 
by a s t ipula t ion filed with the 
h e aring of f icei; w ay agr ee upon 
any fac t inv o lv e d -irt t+re 
coiitiuversy , wliicli stipula t ion 
i;hall irs admissibl e zrs e vid e nc e 
srt ±hc heai ' ii ' iij and binding on 
tire par t ies t li c r eto . 

Parties in a contested case 
may stipulate to any fact 
involved in the controversy in 
accordance with G.S. I5rp-31. 
Parties 



may 



enter 



such 



agreements on their own or may 
request a settlement conference 

to promote consentual 

disposition of the case. 



.0216 DISQUALIFICATION OF 
HEARING OFFICER 

(a) If at any timie any 
hearing officer believes he 
gould ntrt cannot conduct a 
heal ' iiig and pm. form irirs otl^er 
func t ions r e la t ed tr> th« 
c on t ested cas e contested case in 
a fair and impartial manner, he 
shall submit to the secretary or 
his designee a written statement 
indicating why he should be 
disqualified from the case. 
Submission of the statement 
shall disqualify the hearing 
officer. The secretary or his 
designee shall inform all 
parties of the disqualification 
and the reasons therefor. 

(b) If a party in a contested 
case believes that any the 
hearing officer (s) of record 
could nxrt cannot conduct the 
h e aring and pei f oliu hies o t l ' i e i ' 
functions r e lated ttr t h e 
contested case in a fair and 
impartial manner, the party 
shall submit to the secretary or 
his designee a written statement 
indicating why the hearing 
officer should be disqualified 
from the case. The statement 
must be filed at the first 
opportunity after the party 
becomes aware of the reasons for 
disqualification; provided, that 
the statement may also be filed 
at any time before the hearing 
begins. The secretary or his 
designee shall inform all 
parties that the statement has 
been filed and shall, upon 
request by any party, provide 
that party with a copy of the 
statement . The secretary or his 
designee shall investigate the 
allegations of the statement and 
shall decide whether to 
disqualify the hearing officer. 
The secretary or his designee 
shall promptly inform all 
parties of the decision and the 
reasons therefor . In no case 
shall the secretary's designee 
be the hearing officer whose 
disqualification is sought by 
the party. 

(c) When a hearing officer is 
disqualified or it is 
impracticable for him to 
c u iitinu e t+te h e aring , proceed 
with a contested case, another 
hearing officer shall be 
assigned by the secretary or his 
designee to proceed with the 
case. However, if it is shown 
to the secretary, his designee, 
or the newly assigned hearing 
officer that substantial 
prejudice to any party will 
result from continuation of the 
case then either: 

( 1 ) the case shall be 



NORTH CAROLINA REGISTER 



695 



dismissed without prejudice; 
or 
(2) all or part of the case 
shall be repeated or- b e gun 
again as necessary to 
substantially prevent or 
substantially remove the 
prejudice. 
The secretary or his 
designee shall promptly inform 
all parties of his decision to 
assign a new hearing officer, 
that the case has been dismissed 
without prejudice, or that all 
or part of the case is to be 
repeated. ot begun again . Such 
notification shall include a 
statement of the reasons for the 
decision . 

.0219 CONDUCT OF HEARING 

In accordance with G.S. 
150 A B -33, the hearing officer 
shall have complete control over 
the hearing, including: 

(1) the responsibility of 
having a record made of the 
hearing, 

(2) recognition of speakers, 

(3) prevention of repetitious 
presentations, and 

(4) general management of 
the hearing. 

.0220 DECISION 

(a) In accordance with 
G.S. 150 A B -34, if the hearing 
officer has not been delegated 
the final decision-making 
authority for the matter at 
issue, the hearing officer shall 
prepare a proposal for decision 
which shall be served on all 
parties. The proposal shall 
contain findings of fact, 
conclusions of law and a 
proposed decision. 

( d ) W h e n t he final d e cision 
mak er -is nrrt t he hea r in g 
officer , t+re final 
decision — m ak e r may -in his/'liex ' 
discretion allow t+te par t i e s -to 
mak e o r al argum e nts pi ior t^ 
issuing a final d e cision . irt 
sucli cases , the final 
dei-i&ion mak e r nmy p lac e 
ff liat e ver r e s t ric t ions li e /siie 
deems appropria te on such 
pres e n t ations including 

reasonabl e tim e limits on the 
presentation trf oral ar juinents . 
During oral argumen t s t+re 
p ar t ies may mrt introduc e n«w 
evidenc e . 

■fe-)- (d) In making a final 
decision, the final 
decision-maker must consider 
fully all material contained in 
the hearing record. The final 
decision must be in writing and 
contain findings of fact and 
conclusions of law. In those 
cases where the final decision 
is different from the 



recommended decision, the final 
decision must contain specific 
reasons why the recommended 
decision was not adopted. A 
copy of the final decision shall 
be served upon all parties. 

(e) If the final agency 
decision-maker determines that 



the 



official 



record 



of 



contested case does not contain 
sufficient information on which 



to 



base 



the 



final 



aqencv 



decision, the case mav be 
remanded to the hearing officer 



for 



the 



curing 



of 



the 



insufficiency. The remand order 



shall 



contain 



instruct ions 



specific 



as 



to how the 



insufficiency in the official 
record mav be cured. 

.0222 TRANSCRIPTS 

Any person who desiring 
a transcript of all or part of a 
contested case hearing shall 
contact the Office of 
Legislative and Legal Affairs or 
the appropriate division hearing 
office . A fee equal to the cost 
of preparing the transcript 
shall be charged and the party 
may be required to pay the fee 
in advance of receipt of the 
transcript. The transcript may 
be edited to remove confidential 
material . 

.0223 CONSOLIDATION 

(a) Parties requesting 
consolidation of contested cases 
or parts thereof shall file a 
written motion for consolidation 
with the hearing officer and 
shall serve copies of the motion 
on all other parties to the 
matters for which consolidation 
is requested . 

(b) The motion shall include 
the following information: 

( 1 ) the name and address of 
the movant ; 

(2) the names and docket 
numbers of all contested 
cases that the movant seeks 
to have consolidated; and 

( 3) a statement of the 



reasons 



prompting 



the 



request for consolidation, 
(c) Any party mav oppose the 



requested 



consolidation 



by. 



filing a notice of objection 
v;ith the hearing officer within 
10 days of the receipt of the 
motion. Copies of the motion 
shall be served on all other 



parties . 



The 



notice 



of 



objection shall state clearly 



the 



reasons "why the party 



objects to the consolidation. 

(d) The hearing officer shall 
determine v;hether consolidation 
is appropriate and shall issue 
a n order stating whether and to 
what e.xtent consolidation will 



696 



NORTH CAROLINA REGISTER 



be allowed. The order shall 

state the reasons for the 
decision. Copies of the order 
shall be served on all parties. 

.0224 FAILURE TO APPEAR 

(a) If a party in a contested 
case fails to appear at the 
hearing, the hearing officer may 
proceed witli the hearing, or tlie 
hearing officer may find the 
allegations set out in the 
notice of hearing or other 
pleadings to he taken as true or 
deened proved without further 
evidence . 

(b) If the hearing is 
conducted in the absence of a 
party, the absent party may 
request that the hearing be 
re-opened by filing a motion to 
that effect with the hearing 
officer v;ithin 10 days of the 
hearing date. The motion shall 
contain the reasons that the 
movant failed to appear at the 
hearing or rogucst a continuance 
prior to the hearing. Copies of 
the motion shall be served on 
all parties . 

(c) The hearing officer shall 
grant the motion for reopening 
of the case upon a shovfing of 
good cause. 

SUBCHAPTER IF - REIMBURSEMENT 

SECTION .0400 - DEPARTMENTAL 

RULES ON REPAIR/REPLACEMENT 
OF PERSONAL PROPERTY 

.0401 PURPOSE AND SCOPE 
The purpose of the rules 
contained in this Section is to 
establish a uniform policy 
governing repair or replacement 
of personal property items 
belonging to employees, 
volunteers, or clients of 
Department of Human Resources 
facilities. The rules contained 
in this Section are intended to 
interpret or supplement the 
requirements contained in G . S. 
143 Article 7A. Each division 
director is responsible for 
implementing the requirements 
contained in G.S. 143 Article 7A 
and the rules contained in this 
Section as they relate to 
facilities under his/her 
supervision and may develop more 
specific policies governing 
their implementation. 

.0402 DEFINITIONS 
As contained in this 
Section, the following terms 
have the following meanings; 
(1) "Client" means any person 
who is under the supervision 
of a Department of Human 
Resources facility for 



purposes of treatment, 
habilitation or education; 

(2) "Employee" means an 
individual hired on a 
temporary, part-time, or 
full-time basis by the 
Department of Human Resources 
facility; 

(3) "Facility" means a 
hospital, center, institution 
or school operated by the 
Department of Human 
Resources; and 

(4) "Volunteer" means an 
individual certified or 
accepted by the facility to 
perform assigned duties for 
the facility without 
remuneration for time spent 
in the performance of these 
duties . 

.0403 CRITERIA FOR DETERMINING 

REIMBURSEMENT 

ELIGIBILITY 
Prior to issuing reimbursements 
to facility employees, 
volunteers, or clients for 
personal property damaged or 
stolen by facility clients, the 
facility director or designee 
must prepare a written report, 
including the following 
information : 

(1) facts supporting a 
conclusion that the client, 
employee or volunteer is 
eligible to seek 
reimbursement under the 
requirements of G.S. 
143-127.2; 

(a) for employees and 
volunteers, this includes 
written findings that the 
damage or theft occurred 
within the scope of their 
employment or volunteer 
duties and that the item(s) 
damaged or stolen was 
necessary to the performance 
of those assigned duties; 

(b) for clients, this 
includes written findings 
that the item(s) was damaged 
or stolen while the client 
was under the supervision of 
the facility and that the 
item(s) was a necessary part 
of the treatment, 
habilitation, or education 
environment as determined by 
personnel responsible for 
treatment, habilitation, or 
education decisions 
concerning the client. 
Reimbursement for damaged 
property may not be granted 
to a client if that client 
was responsible for the 
damage to the property; 

(2) facts supporting a 
conclusion that the employee, 
volunteer or client is 



NORTH CAROLINA REGISTER 



697 



eligible for reimbursement 
under G.S. 143-127.3; 

(3) facts supporting a 
conclusion that the 
requirements of G.S. 
143-127.4 have been met. In 
documenting compliance with 
this provision, the facility 
shall specify the efforts 
made to recover the 
reimbursement cost from 
insurance, the client or 
other sources as applicable; 
and 

(4) a description of the item 
damaged or stolen and 
evidence as to its 
repair/replacement value less 
normal depreciation. 

.0404 LIMITATION ON 
REIMBURSEMENT 

Reimbursement may not exceed 
two hundred dollars ($200.00) 
per incident. In applying the 
reimbursement limitations set 
out in G.S. 143-127.5, the five 
hundred dollars ($500.00) per 
year limitation shall apply to 
volunteers and clients as well 
as employees and shall be 
calculated using the state 
fiscal year. 

.0405 PROCEDURE FOR REQUESTING 
REIMBURSEMENT 

The division/ facility director 
shall determine the procedure 
for seeking reimbursement 
subject to the following 
limitations : 

(1) a written account of the 
incident which resulted in 
the request shall be prepared 
by the employee, volunteer, 
or client (or client 
representative) and presented 
to the facility director or 
designee within 48 hours of 
the time that the employee, 
volunteer, or client becomes 
aware of the incident. If a 
client requests assistance 
from facility staff in 
preparing this account, the 
assistance shall be provided 
to the client; 

(2) the written account 
must include: 

(a) a brief description of 
the incident including date, 
time, place and individuals 
involved; and 

(b) a description of the 
items for which 
reimbursement is sought, 
including cost, age, and in 
the case of damaged 
property, a description of 
the damage . Damaged 
articles must be made 
available for inspection by 
facility personnel at the 
request of the facility. 



.0406 RESPONSE TO REQUEST 
AND APPEAL RIGHTS 

(a) Within 30 days of 

a completed request for 
reimbursement, the facility 
director or designee shall 
respond to the request for 
reimbursement . 

(b) If no response is received 
or if a negative response is 
received, the employee, 
volunteer, or client may file a 
request for reconsideration with 
the division director or 
designee within 10 days of 
receipt of the facility decision 
or the expiration of the period 
for rendering the facility 
decision, whichever is earlier. 
The facility director shall 
forward all pertinent 
information to the division 
director or designee for review 
within 10 days of receipt of a 
request for that information. 

(c) Within 15 days of 
receipt of the request for 
reconsideration, the division 
director or designee shall issue 
a response to the request . If 
no response or a negative 
response is received, the 
employee, volunteer, or client 
may then request a contested 
case hearing in accordance with 
G.S. 150B-23 by submitting a 
petition for hearing to the 
Office of Administrative 
Hearings within 10 days of 
receipt of the decision of the 
division director or designee or 
the expiration of the period for 
the rendering of that decision, 
whichever is earlier. The final 
administrative decision shall be 
issued by the Director, Division 
of Budget and Analysis or 
designee. Nothing in this 
section shall be construed as 
superseding the requirements of 
G.S. 143-127.5 that payment of 
any claim for reimbursement 
shall be subject to the 
identification of funds by the 
facility to cover the cost of 
reimbursement . 

.0407 NOTICE 

Clients shall be made aware of 
the potential liability under 
G.S. 143, Article 7A . 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the Division of Health 
Services intends to amend and 
repeal regulations cited as 10 
NCAC 4C .0203; .0204; and .0402; 
10 NCAC 7A .0401; 10 NCAC 8C 
.1202; .1203; .1210; .1302; 
.1309; and .1310; .1312 and 10 
NCAC 8F .0111 and 10 NCAC 1 OA ■ 
.^.001; .2007-.2010; and 10 NCAC 



698 



NORTH CAROLINA REGISTER 



10D .2401; .2407; .2409-. 2411; 
and 10 NCAC 10F .0001; 

.0028-. 0032; .0034; and .0041 
and 10 NCAC 10G .0701; 

.0703-. 0707. 

The proposed effective date of 
this action is May 1, 1987; June 
1, 1987; and July 1, 1987. 

Statutory Authority: G.S. 
130A-5(3); 130A-22; 130A-22(f); 
130A-124; 130A-127; 130A-152(c); 
130A-177; 130A-205; 130A-294(c); 
130A-361; 143B-193. 

The public hearing will be 
conducted at 1:30 p.m. on 
February 17, 1987 at Archdale 
Building, Room G 170 (Hearing 
Room), 512 N. Salisbury Street, 
Raleigh, North Carolina. 

Comment Procedures : Any person 
may request information or 
copies of the proposed rules by 
writing or calling John P. 



portion of the annual net family 
income shall be computed on the 
basis of the 6 month period 



Barkley , 

Specialist , 

Services, 

Raleigh, 

27602-2091, 

Written 

subjects 



Agency Legal 

Division of Health 

P. 0. Box 2091, 

North Carolina 

(919) 733-3131. 

comments on these 

may be sent to Mr. 



Barkley at the above address. 
Written and oral (for no more 
than ten minutes) comments on 
these subjects may be presented 
at the hearing. Notice should 
be given to Mr. Barkley at least 
three days prior to the hearing 
if you desire to speak. 



CHAPTER 4 



HEALTH: OFFICE OF 
THE DIRECTOR 



SUBCHAPTER 4C 



-PAYMENT 
PROGRAMS 



SECTION .0200 - ELIGIBILITY 
DETERMINATIONS 

.0203 ANNUAL NET FAMILY 
INCOME 

(a) Annual net family income 
shall be computed by subtracting 
the deductions allowed in 
Paragraph (d) of this Rule, from 
the gross family income as 
computed in Paragraph (c) of 
this Rule. 

(b) The time period to be 
used as the basis for computing 
annual net family income is the 
12 month period preceding the 
date a patient or his 
representative makes application 
for eligibility to a particular 
payment program. However, if 
t h e family' s major v<age e ajiiier 
vrsis any of the family's wage 
earners were unemployed at any 
time during this 12 month 
period, that wage earner's 



preceding 

application 

for the 

succeeding 

application 

current employment 



the date of 

plus a projection 

6 month period 

the date of 

based upon the 



or benefit 



situation . 
(c) Gross Family Income 
(1) Gross family income 

shall mean the combined cash 
income received by the 
patient's family from the 
following sources: 
-(-ft-)- Gala r i e s twrd wages; 
(D ) Earnings from a.elf 

em ployi ii eiit ; 
(C ) Inv e s t men t , incom e , 

s t ocks , bonds , savings, 

accoun t in te r e s t , rentals, 

■and vH ot her inv e s t m e n t 

income ; 
■fB-)- Publi c assis t anc e m o n e y; 
(C ) Un e mploy e mn t 

c o mp e nsation; 
(f ) Alimony and child 

suppor t paym e nts ; 
-(-&> Militaiy alluti i i e n t s; 
■ffH- Gocial Security b e n e fi t s; 
-(-f-)- V et eran' s administration 

( J ) R et ir e m e n t and pe nsion 

pay me nts ; arrd 
-(-K-)- ttfoiker ' s «-umpensation . 

(A) salaries and wages; 

(B) Earnings from 
self-employment ; 

(C) Investment income, 
stocks, bonds, savings 
account and money fund 
interest, rentals, and all 
other investment income; 

(D) Periodic Trust 
Fund payments; 

(E) Public assistance 
money; 

(F) Unemployment 
cornpensation; 

(G) Alimony and child 
support payments received; 

(H) Military allotments; 
(I) Social Security 

benefits ; 
(J) Veteran's 

Administration benefits; 
(K) Retirement and pension 

payments ; 
(L) Worker's compensation; 
(M) Educational stipends in 

excess of the cost of 



tuition and books; 

(N) Income tax refunds; 

(0) Allov;ances paid for 
basic living expenses such 
as housing and utilities; 

(P) All other sources of 
cash income except those 
specifically excluded. 
(2) Gross family income 

does not include : 

(A) Income that children 



NORTH CAROLINA REGISTER 



699 



may earn from babysitting, 
lawn mowing, or other 
miscellaneous tasks; 

(B) Supplemental Security 
Income benefits; 

(C) Proceeds from the 
sale of an asset; 

(D) Withdrawals from a 
bank account; 

(E) Gifts; 

(F) Inheritances; 

(G) Life insurance proceeds 

of other one t ime 

insurance settlements. 

(d) Any of the following 
expenses which are paid or 
incurred by a member of the 
patient's family shall be 
allowed as deductions in 
determining annual net family 
income : 

(1) State, federal, and 
social security taxes and 
any deductions from pay 
required as a condition of 
employemnt such as mandatory 
retirement contributions; 

(2) Medical and dental 
expenses not covered by a 
third party payor, including 
the reasonable cost of 
transportation required to 
obtain the medical and 
dental services; 

(3) Health insurance 
premiums ; 

(4) Child car e e x pe ns e s -frrr 
any child und e r +5 y e ars «rf 
agi? jsrrd any handicapp e d 
c hild o v er +4 y e ars o-f ?rg« 
i-f bo t h par e nts wtrrk trr ar« 

disabled ; Child care 

expenses for any child 14 
years of age and under and 
any handicapped child 15 
years of nge and over if 
both paronts of a two parent 
family or a single parent 
work or are disable; 

(5) Expenses for the care 

of a spouse who is 
physically or mentally 
unable to take care of 
himself or herself while the 
other spouse is at work; 

(6) Child support and 
alimony payments -and paid to 
support someone outside of 
the family household; and 

(7) Educational expenses 
incurred b e caus e trf ++re 
disability «rf a m e m b e r trf 
■Htc patient ' s family . for 
the purpose of managing the 
disability of any member of 
the patient's family. 

.0204 DETERMINATION OF 
FAMILY SIZE 

(a) For the purpose of 
determining eligibility for 
benefits provided by any of the 
payment programs, a patient's 
family shall be defined as the 



patient and all indivuduals 
living in the same household 
with the patient who are: 

( 1 ) ¥h« patien t ; 

( 2 ) ftii individuals r e la te d 
tr> -Hre p ati e n t by bl oo d , - 
mai ' i. iage . adop t ion, trr 
quardian.:>hip wh o 1 iv e -in "Hre 
sam e hous'ehold as -Hre 
patien t ami vriro also ; 

(A) con t ribut e ■to t h e 

suppor t trf tl ' ie pati e nt ; 
\ u f Jiave aTX or pai l \j l 
th e ir suppor t pi ovided by 
the patien t ; «rr 
(G ) shar e wi t h ttre pa t i e nt 
a common soui c e trf support 
which -irs pi ovided by a 
p e rson who 1 ives -irt trhe 
■same hous e hol d as the 
p a t i e n t ; 
-(-3-)- A s t uden t re la te d tt> t+re 
pa t ien t by blood, iiiai.r iage, 
adop t ion , err guardianship 
whose perman e n t hom e -i-s "the 
household -in which t lie 
p ati e n t liv e s , and who also ■ 
(A) con t ribu te s to "th* 

suppor t of th e patien t ; 
■fB-)- have ati or part o-f 

their suppor t provided by 
trh« pa t i e n t ; or 
( C ) share w ith the pat ient 
a commoi ' i sourc e of suppoit 
which TS provided by a 
person who liv e s -in -Hre 
hous e h o ld trf thts patient ; 
and 
■(-4-)- in ttre ca se v£ pa t i e n t 
who Ts t emporarily livin g 
away from his ymman e nt liom e 
while att e nding school , all 
individuals rela t ed to t+re 
p a t i e n t by blood, marriage , 
adopt i o n , or guai dianolii p 
w h o live -in t h e h o uscliold 
vi liicli irs t li e peL ii ianent 
household of th e studen t 
pati e n t , and who also . 
(A) con t ribu t e to t he 

suppor t o-f th e p jliei ' it ; 
( D ) have all or pai' L ox 
t h e ir suppor fc provided fay 
th e pa t ien t ; or 
•^64 sliare wi t h the patien t 
a >:,ommon source trf suppor t 
which irs p rovid e d fay a 
p e rson who lives -in the 
perman e n t hous e hold of tfae 
patient . 
(b ) For the purpos e s of t his 
Rule , individuals rela t ed to the 
pat l e nt fay mar r iag e sliall 
include , btrt not fa« limi te d to 
s t epparents , s te pchild! en , 
st e pbr o t liers and s t epsis t ers , 
lialf biuthcrs, and half si-^ters 
of the pati e nt . llowevei , irf a 
sleppai eiit of t h e patient 
le fuses tty accep t r e sponsibili t y 
■ftrr tfao medical e xpenses of th« 
pati e n t , then the patien t ' s 
family shall includ e only tliose 
■i idividuals r e la t ed to tfae 



700 



NORTH CAROLINA REGISTER 



pa t i e n t by blood> yuai ' dianship) 
OT aJuption who mee t t h e 
requirem e n t s of Para gr a p h -fa^ trf 
this Rul e . 

(1) parents, not including 

step-parents , of the 

patient, if the patient is 
unmarried and less than 
eighteen years of age; 

(2) siblings or half-siblings 
of the patient, but not 



step-siblings , 



if 



the 



siblings-are unmarried and 
less than 18 years of age; 
(3) siblings or half-siblings 
of the patient, but not 



step-siblings , 



if 



the 



siblings are 18 years of age 
or oyer and have no income; 
and 

(4) the spouse of the 
patient ; and 

(5) individuals related to 
the patient by blood, 



marriage, or adoption, if 



the 



individual 



income, and if no pnrcnt(s) 
or spouse of the individual 
lives in the same houehold 
and has income ; 

(b) Individuals who are 
students and are temporarily 
living av;av from their permanent 
home while attending school are 
for the purposes of the Rule 
considered to be living in the 
household of the permanent home . 

(c) An adopted child vfho has 
received approval for Children's 
Special Health Services support 
pursuant to 10 NCAC 8D .0800 
shall be considered a family of 
one for purposes of this Rule. 

(d) Except as provided in 
paragraph (c) of this Rule, an 
adopted child shall be 



considered 



the 



biological child and an adoptive 
parent shall be considered the 
same as a biological parent . 

(e) For the purpose of this 
Rule, a half-sibling is a child 
who has one biological parent in 

common v>ith the patient. A 

step-sibling is the child of a 

step-parent v;ho has no 

biological parent in common with 
the patient . 

SECTION .0400 - REIMBURSEMENTS 

.0402 REIMBURSEMENT FOR 

INPATIENT HOSPITALIZATION 

(c) The division shall 
reimburse providers of 
authorized impatient 

hospitalization services under 
the Migrant Health Program at 
the rate of om? two hundred 
t wen t y fiv e dollars (0125.00) 
($200 .00) per day or the full 
Medicaid per diem, whichever is 
less . 



CHAPTER 7 - HEALTH EPIDEMIOLOGY 

SECTION .0400 - IMMUNIZATION 

.0401 DOSAGE AND AGE 

REQUIREMENTS FOR 
IMMUNIZATION 

(a) Every child in North 
Carolina shall be immunized 
against the following diseases 
by receiving the specified 
minimum doses of vaccines by the 
specified ages: 

(1) diphtheria, tetanus, and 
whooping cough — five doses; 
three doses by age one year 
and two booster doses, one 
in the second year of life 
and the second on or after 
the "fourth birthday; 

(2 ) oral poliomy e litis 
vai-ciii e , trlval e nt 

t y pe t hr ee dos e s by ag« two 

y e ars ; or i i ioiiovalen t 

typ e on« d o s e of e ach t yp e 

by Jrg« two year s; oral 
poliomyelitis vaccine — three 
doses of trivalent type by 
age two years and a booster 
dose of trivalent type on or 
after the fourth birthday; 
or one dose of each of the 
three monovalent types by 
age two years and a dose of 
trivalent type after the 
fourth birthday; 

(5) mumps vaccine — one 

does of live attenuated 
vaccine by age two years. 

(b) Notwithstanding the 
requirements of Subsection (a) 
of this Regulation: 

(6) The requirements for 
mumps vaccine, and for 
booster doses of diphtheria, 
tetanus, and whooping cough 

vaccine and oral 

poliomyelitis vaccine, shall 
not apply to children who 
enrolled for the first time 
in the first grade before 
July 1, 1987. Children who 
receive the first booster 
dose of diphtheria, tetanus, 
and whooping cough vaccine 
on or after the fourth 

birthday shall not be 

required to have a second 
booster dose . 



CHAPTER 8 



HEALTH: PERSONAL 
HEALTH 



SUBCHAPTER 8C - NUTRITION AND 

DIETARY SERVICES 

SECTION .1200 - WIC PROGRAM 
ADMINISTRATIVE APPEALS 



.1202 



GENERAL CONDITIONS 
(REPEALED) 



.1203 AVAILABILITY 

(b) All administrative appeals 



NORTH CAROLINA REGISTER 



701 



under this Section ci t h e i * t han 
t hos e L 'e &ul t ing fr om i^ai ' tct iuii*. 
impos e d und er +& NGAO 4^{ .0 9 00 
must b« -irt wr i t iiic; statiiiij t+re 
reasons -ftrr -Hre app e al tr> the 
Director o^ t+re Division o-f 
Heal t h G e rvices, fH- er frox 20 9 1 , 
Ral e igh, North Carolina 27002 
and tlte a p p e al m ust be r e c e iv e d 
by tl ' ie direc t or shall be made in 
accordance with G.S. 150B and 10 
NCAC IB. The Appeal must be 
made ■• 

.1210 HEARING PROCEDURE 
AND RIGHTS OF THE 
PARTIES (REPEALED) 

SECTION .1300 - WIC PROGRAM 
PARTICIPANT FAIR HEARINGS 

.1302 GENERAL CONDITIONS 
(a) This Section shall be 
carried out in accordance with 7 
C.F.R. 2 ' ^6. 23 247.20 (1979) and 
G.S. 150B-22. The fair hearing 
procedures set out in this 
Section establish an informal 
dispute resolution process which 
must be complied with prior to 



making 



formal appeal in 



150B and 10 



accordance with G.S. 
NCAC IB. 



.1309 HEARING OFFICER 
The agency official or any 
designated representative he/she 
may name who did not participate 
in making the decision under 
appeal may be the hearing 
officer. The hearing officer 
shall: 

( 1 ) adminis te r oa t hs trrrd 

affirma t ions preside over 
the informal proceeding; 

.1310 HEARING PROCEDURE 
AND RIGHTS OF THE 
AGGRIEVED PARTY 
(d) Any party to the hearing 
may present any oral or 
documentary evidence and 
arguments. lin-luJing sm 
oppor t uni t y tt> confron t and 
cross e xamine adv e rs e witn e sses . 

.1312 APPEAL OF A FAIR 
HEARING DECISION 
(REPEALED) 

SUBCHAPTER 8F - SICKEL CELL 
SYNDROME: GENETIC 
COUNSELING: 
DEVELOPMENTAL 
DISABILITIES BRANCH 

SECTION .0100 - SICKLE CELL 
SYNDROME PROGRAM 

.0111 MEDICAL SERVICES 
PROVIDED 

•fiH- The No rt h Carolina sickl e 
ce ll syiiUi ' um e pi oyi am sliall 
provid e s e rvic e s o nl y wh e n tliey 



ar e no t availabl e tlu ough o t h e r 
sou r c e s tyr a ge nci e s . Prior tw 
r e qu e s t ing servic e s, -it should 
be detenu in e d t hat' t li e p a t ient 
■irs ntrt e ligibl e ^ot" services 
through tbe divisi o n tyf s e rvic e s 
■fxrr "the bl ind, Medicaid artd 
Medi c ar e p rograms ; school h e al t i i 
p rogram ; vocational 

rehabili t a t ion ; workmen' s 
comp e nsat ion xrr civ ilian health 
anti medical piogi ams trf the 
unif orme d s e rvices (CHAMPUS) . 

■Hr^ a an individual meets -Hre 
e ligibility i eijuir em e n t s , he 
sliall be provided ttte following 
m e dical s e i vices . 

( 1 ) for ii ' -dividuals below t h e 
age lyf 21 , all ou t pati e nt 
and aii inpa t i e n t ca re sliall 
be paid for by the Crip p led 
Cliildr e n' s Program, 

including all liospital and 
physician fees . for 
individual 2+ years «rf age 
and older , airi outpatient 
and aii inpatien t car e sliall 
be pa rd for by the G ^.ckle 
Cell Gyndioui e Program. 
■fS-)- Outpatient s e rvic e s 
include . 
-(-A> rou t in e visi t s -to -the 

pl ' iysician ; 
■(-&-)■ piescr ip t ion diugs such 

as an t ibiotics ; 
+€-)• general analgesics) 
■(rB-^ applianc e s ; 
(E ) preven t iv e vrrd limi te d 
main te nance dentistry frrr 
adul t pati e n t only; 
■(-F4- obs t eti ical car e 

(excluding delivery rrf 
baby ) ; and 
(G ) eye car e ( when tire 

div ision xrf ser vices fnr 
the blind will no-t provid e 
c o v e rage ) . 
The Sickle Cell Syndrome 
Program provides reimbursement 



for 



services 



and 



supplies 



related to sickle coll disease 



which 



are 



provided 



to 



financially 



and 



medically 



eligible individuals 21 years of 



age and older. 



Financially 



eligible children under 21 with 
sickle cell disease who are not 
served by physicians rostored 
with Children's Special Health 



Services are also covered. 



The 



follovjing services are covered: 

(1) inpatient hospitalization 
which is limited to five (5) 
days per admission; and 

(2) outpatient services: 

(a) hospital outpatient 
services , 

(b) emergency room services, 

(c) physician's services, 

(d) drugs and administration 
of drugs, 

(e) physical, occupational 



(f ) 



nd speech therapies. 

appliances and supplie 



702 



NORTH CAROLINA REGISTER 



(q) dental care for children> 
(h) emergency dental care 

for adults, limited to 



services 



necessary 



to 



control bleeding, relieve 



pain. 



eliminate 



acute 



infection. 



and 



treat 



traumatic injuries to the 
teeth; and 
(i) eve care, only when 

documentation is provided 
that coverage through the 
Division of Services for the 
Blind is unavailable. 

CHAPTER 10 -HEALTH SERVICES. 
ENVIRONMENTAL HEALTH 

SUBCHAPTER 1 OA - SANITATION 

SECTION .2000 - ADMINISTRATIVE 
PENALTIES 

.2001 DEFINITIONS 
(2) "Hearing Officer" means 
the divisi o n o-f h e al t h 
servic e s h e arin g offic e r 
presiding officer in a 
contested case hearing; 

.2007 PROCEDURE FOR 
ASSESSMENT 

(b) For all violations for 
which a penalty is assessed, a 
notice of such action shall be 
sent to the respondent by 
registered or certified mail. 
The notice shall describe the 
nature of the violation with 
reasonable particularity, the 
amount of the penalty for each 
violation, that each day of a 
continuing violation constitutes 
a separate violation, advise 
that the penalty is now due or 
that it will become due at the 
end of a specified time, and 
advise the respondent of his 
rights of appeal «rs sp e cifi e d -in 
+e NBAe +fi .0200. 

.2008 PAYMENTS: HEARING 
(a) Within 30 days after 
receipt of notification of a 
penalty assessment, the 
respondent must tender payment, 
or submit in writing a request 
for an administrative hearing 
si:jccifying aii the factual or 
le g al issues in dispu t e , or* 
submit -in w r i t in g a reques t for 
art adminis t ra t iv e h e arin g or 
remission or m i t i g a t i o n «rf ■fcttw 
penal t y s t ating the reasons why 
such request -irs justified . 
W h ere a li e ar ing -irs r e quest e d, -rt 
shall irr held -rn ac cor daiice wi t h 
r ul e s co n t ained in -1-0 N&'Ve +B 
. 0300 : All appeals shall be 
mad e in accordance with G. S. 
150B and 10 NCAC IB. 



When an administrative hearing 
is requested for a purpose other 
than remission or mitigation of 
the penalty assessed, the 
penalty will be stayed as of the 
date of said request until 
service of the final decision -in 
accordanc e wirth +0 HBAe +B .0200 
or other settlement of the 
matter . 

.2010 WAIVER OF 

ADMINISTRATIVE HEARING 
■i-irt- No t wi t hstanding Rul e 
+0 NeAe +B .0207, t+re respond e n t 
may , fo r a good t.ausc, r e qu e s t a 
con t inuanc e xrf -Htc h e ar ing . The 
r e ques t mus t be irrade- irt writing 
■arrti be r e c e iv e d by t^re li e aring 
officer at leas t five days 
b e for e the scheduled liearing . 
The h e aring offic e r will 
determin e if a continuance 
sh o uld be gran te d or deni e d and 
shall -so inform -the respond e n t 
o-f it-s d e cision at- l e as t one day 
prior "to -the sch e dul e d h e aring . 

SUBCHAPTER 1 OD - WATER SUPPLIES 



SECTION .2400 



ADMINISTRATIVE 
PENALTIES 



sent to 
registered 
The notice 
nature of 
reasonable 
amount of 
violation. 



,2009 



STAY OF PENALTY 
ASSESSMENT 



.2401 DEFINITIONS 
(2) "Hearing Officer" means 
the division xrf li e alth 
services hearin g offic er 
presiding officer in a 
contested case hearing; 

.2407 PROCEDURE FOR 

ASSESSMENT 
(b) For all violations for 
which a penalty is assessed, a 
notice of such action shall be 
the respondent by 
or certified mail, 
shall describe the 
the violation with 
particularity, the 
the penalty for each 
that each day of a 
continuing violation constitutes 
a separate violation, advise 
that the penalty is now due or 
that it will become due at the 
end of a specified time, and 
advise the respondent of his 
rights of appeal as specified in 
+e NeA€ +B .0200. 

.2409 PAYMENTS: HEARING 
(a) Within 30 days after 
receipt of notification of a 
penalty assessment, the 
respondent must tender payment, 
or submit in writing a request 
for an administrative hearing 
specifying aii -Htc factual or 
legal issu e s in dispu t e , or 
submi t in wr it iiig a reques t for 
an admin is Li a t iv e h e aring or 
remission or mi t igation of the 
penal t y statin g the re as o n s why 



NORTH CAROLINA REGISTER 



703 



hueli i. e iju e & t -rs justifi e d . 
W h e r e a hearin g ts r e quealtf J , ■■ -rt 
shall Ire li e ld -irt a c c o rdance with 
rule s con t ain e d -in +& NCAG +B 
-r^ ZOO . All appeals shall be 

made in accordance with G.S. 
150B and 10 NCAC IB. 

.2410 STAY OF PENALTY 
ASSESSMENT 

When an administrative 
hearing is requested for a 
purpose other than remission or 
mitigation of the penalty 
assessed, the penalty will be 
stayed as of the date of said 
request until service of the 
final decision -in accoi. danc e 
wi t h Rul e .0220, Sub c ha pter +B 
«rf t his Ti t l e or other 
settlement of the matter. 



WAIVER OF ADMINISTRATIVE 
HEARING 

Rtritr .0207, 

t his Ti t l e ■ ■ "ttre 

fxrr a g ood 

c on t inuanc e o-f 

requ e st must 



.2411 

No t w i t I ' l s t anding 
Gubchapt e r +fi rrf 
r e spond e nt may, 
cause , requ e s t a 
t h e liuar ing . Such 
bre math; -in wr it iiig arrd irs 
rec e iv e d by t+re h e aring officer 
vt l e as t fiv e days b e f o r e -Hre 
scheduled lie Ji ing . Th« h e a r ing 
o ffic e r will de t ermin e irf sucli a 
con t inuanc e should bv granted err 
denied and sliall sr? inf orm -Hre 
respond e n t vf irbs d e cision a+- 
least OTt« day prior tx» t+tw 
sch e dul e d h e arin g . 

SUBCHAPTER 10F -HAZARDOUS 
WASTE MANAGEMENT 



56,588, 56,589, 47,429, 44,972, 

44,973 (1981); 48 Fed. Reg. 

2,532, 14,293, 14,294, and 

30,115 (1983); 49 Fed. Reg. 

23,287, and 44,980 (1984); and 

50 Fed. Reg. 663, 664, 665, 

1,999, 14,219, 28,743, 28,744, 

49,202, 49,203, and 33,542, 

(1985); and 51 Fed. Reg. 10,174, 

10,175 and 25,472, and 28,682 

(1986) . 

(e) The "Lists of Hazardous 

Wastes" and the accompanying 

appendices (I through VIII X ) 

contained in 45 Fed. Reg. 

33,122 to 33,137 (1980) [ to be 

codified in 40 CFR 261.30 to 

261.33 (Subpart D)] have been 

adopted by reference as amended 

by 45 Fed. Reg. 72,032 to 

72,304, 74,890, 74,892, and 

74,894 (1980); 46 Fed. Reg. 

78,529, 78,537 to 78,544, 

4,614, to 4,620 (1981); 49 Fed. 

Reg. 5,312, 19,923 (1984); and 

50 Fed. Reg. 662, 665, and 

2,000 and 28,744 (1985). 

Supplemental material contained 

in 45 Fed. Reg. 47,833, and 

47,834 (1980); 46 Fed. Reg. 

35,247 to 35,249 (1981); and 48 

Fed. Reg. 14,294, and 15,256 to 

15,258 (1983) have also been 

adopted by reference as amended 

by 50 Fed. Reg. 1999, 2001, 

2002, and 2003, 14,219, 42,942, 

and 42,943, and 53,319 (1985); 

and 51 Fed. Reg. 2,702, 6,541, 

6,542, 5,330, 10,175, and 

19,322, 28,297 to 28,309, 

28,310, 28,682, and 33,612. 

(1986) . 



.0001 GENERAL 

(c) 45 Fed Reg. 33, 073 
(1980) [to be codified in 40 CFR 
260.1 to 260.3 (Subpart A)], 
"General," has been adopted by 
reference as amended by 51 Fed. 
Reg. 28,682 (1986). 

.0028 PETITION FOR RULEMAKING, 
DELISTING AND EQUIVALENT 
METHODS - PART 260 

(b) The provisions for 
"Petitions for Equivalent 
Testing or Analytical Method" 
[codified in 40 CFR 260.21] have 
been adopted by reference as 
amended by 49 Fed. Reg. 47,391 
( 1984) . 

.0029 IDENTIFICATION AND 

LISTING OF HAZARDOUS 
WASTES - PART 261 

(a) The general provisions 
contained in 45 Fed. Reg. 33,119 
to 33,121 (1980) [to be codified 
in 40 CFR 261.1 to 261.6 
(Subpart A)] have been adopted 
by reference as amended by 45 
Fed. Reg. 72,028, 72,037, 
76,620, 76,623, 76,624, and 
78,531 (1980); 46 Fed. Reg. 



.0030 STANDARD FOR HAZARDOUS 
WASTE GENERATORS 
- PART 262 

(d) The provisions for 
"Recordkeeping and Reporting" 
contained in 45 Fed. Reg. 33, 
144 (1980) [to be codified as 40 
CFR 262.40 to 262.44 (Subpart 
D)] have been adopted by 
reference as amended by 48 Fed. 
Reg. 3,981, 3,892, 14,294 
(1983); 50 Fed. Reg. 28,746 
(1985); and 51 Fed. Reg. 10,176 
and 28,682 (1986) . 

(e) The provisions for 
"Special Conditions" contained 
in 45 Fed. Reg. 33,144 (1980) 
[to be codified in 40 CFR 262.50 
and 262.5 + 8 (Subpart E)] have 
been adopted by reference as 
amended by 46 Fed. Reg. 78,529 
(1981) and 48 Fed. Reg. 14,294, 
13,027, and 13,028 (1983); 49 
Fed. Reg. 10,500 (1984) and 50 
Fed. Reg. 28,746 (1985): and 51 
Fed. Reg. 28,682 to 28,684 
( 1986) . 

(f) "Imports of Hazardous 
Waste" provisions contained in 
51 Fed. Reg. 28,684 and 28,685 
( ^986) rto be codified in 40 CFR 



704 



NORTH CAROLINA REGISTER 



262.60 to 262.69 (Subpart F) 
have been adopted. 

(q) "Farmers" provisions 
contained in 51 Fed. Reg. 28,685 
(1986) [to be codified in 50 CFR 
262.70 to 262.79 (Subpart G)] 
have been adopted. 

•(-f-J- (h) The appendix contained 
in 45 Fed. Reg. 33,145 to 33,148 
(1980) has been adopted by- 
reference as amended by 48 Fed. 
Reg. 3,982 (1983) and 
Reg. 10,500 to 10,506 
and 50 Fed. Reg. 28,744, 
ami 28,746 (1985); and 
Reg. 28,685, 
(1986) ■ 



49 Fed. 

(1984); 

28,745, 

51 Fed. 

35,192 to 35,194 



.0031 STANDARDS FOR 

HAZARDOUS WASTE 

TRANSPORTERS - PART 263 
(c) The provisions for 
"Compliance With the Manifest 
System and Recordkeeping" 
contained in 45 Fed. Reg. 33,151 
and 33,152 (1980) [to be 
codified in 40 CFR 263.20 to 
263.22 (Subpart B)] have been 
adopted by reference as amended 
by 45 Fed. Reg. 86,973, 86,974 
(1980); and 51 Fed. Reg. 10,176 
and 28 r 685 (1986) . 

.0032 STANDARDS FOR OWNERS/ 
OPERATORS OF HWMF's 
- PART 264 

(i) "Financial Requirements" 
contained in 46 Fed. Reg. 2,851 
to 2,866 and 7,678 (1981) [to be 
codified in 40 CFR 264.140 to 
264.151 (Subpart H)] have been 
adopted by reference as amended 
by 47 Fed. Reg. 15,047 to 15,064 
and 16,554 to 16,558, and 
32,357 (1982) and 48 Fed. Reg. 
30,115 (1983), and 51 Fed. Reg. 
16,447 to 16,451, 25,472, 
(1986), except that 40 CFR 
264.143(a)(3), (a)(4), (a)(5), 
(a)(6), 40 CFR 264.145(a)(3), 
(a)(4), (a)(5), (a)(6), 40 CFR 
264.147(a), 40 CFR 264.147(b), 
40 CFR 264.151(a)(1), Section 
15, and 40 CFR 264.151(g), and 

40 CFR 264. 151(a), 

(b), (c), (d), (e), (f ), (h), (i), and 
( .1 ) are not adopted by 
reference . 

(27 ) The following shall be 
substituted for the 



provisions 



of 



40 



CFR 



264. 151 (a), (b( , (c) , 
(d), , (e) , (f ), (h), (i), and 
(i), which were not adopted 
by reference; 
"264. 151 Wording of 
the instruments. 
(a)(1) A trust agreement 

for a trust fund, as 



specified 



Sections 



264.143(a) or 264.145(a) or 



Sections 



265. 143(a) 



except that instructions in 
brackets are to be replaced 

with the relevant 

information and the brackets 
deleted : 

Trust Agreement 

Trust Agreement , the 
"Agreement," entered into as of 
[date] bv and between [name of 
the owner or operator], a [name 
of State] [insert "corporation," 
"partnership," "association," or 

"proprietorship" ] , the 

"Grantor , " and [name of 

corporate trustee], [ insert 

"incorporated in the State of 
"or "a national band"], the 
"Trustee . " 

Whereas, the North 
Carolina Department of Human 
Resources, "DHR" , an agency of 
the State of North Carolina, has 
established certain regulations 
applicable to the Grantor, 
requiring that an owner or 
operator of a hazardous waste 

management facility shall 

provide assurance that funds 
will be available when needed 
for closure and/or post-closure 
care of the facility, 

VJhereas, the Grantor 
has elected to establish a trust 
to provide all or part of such 
financial assurance for the 
facilities identified herein, 

t'Jhereas, the Grantor, 

acting through its duly 

authorized officers , has 

selected the Trustee to be the 
trustee under this agreement, 
and the Trustee is willing to 
act as trustee . 

Now, Therefore, the 
Grantor and the Trustee agree as 
follows : 

Section 1. Definitions. 
As used in this Agreement ; 

(a) The term "Grantor" 
means the owner or operator who 
enters into this Agreement and 
any successors or assigns of the 
Grantor . 

(b) The term "Trustee" means 
the Trustee who enters into this 
Agreement and any successor 
Trustee . 

Section 2. Identification 
of Facilities and Cost 



Estimates . 



This Agreement 



265.145(a) of this chapter, 
must be worded as follows. 



pertains to the facilities and 
cost estimates identified on 
attached Schedule A [on Schedule 
A, for each facility list the 
EPA Identification Number, name, 
address, and the current closure 

and/or post-closure cost 

e stimates, or portions thereof, 
for which financial assurance is 
demonstrated by this Agreement]. 

Section 5. Establishment 
of Fund. The Grantor and the 
Trustee hereby establish a trust - 
fund, the "Fund," for the 



NORTH CAROLINA REGISTER 



705 



benefit of DHR . The Grantor and 
the Trustee intend that no third 
party have access to the Fund 
except as herein provided. The 
Fund is established initially as 
consisting of the property, 
which 



beneficiary and with the care. 

skill, prudence, and diligence 
under the circumstances then 
prevailing which persons of 



prudence, acting in 



like 



is acceptable to the matters ■ 



capacity and familiar with such 



would 



the 



Trustee, described in Schedule B conduct of an enterprise of a 

like character and with like 



attached hereto. Such property 

and any other property 

subsequently tra nsf e rrod to the 
Trustee is referred to as the 
Fund, together with all earnings 
and profits thereon, less any 
payments or distributions made 
by the Trustee pursuant to this 
Agreement . The Fund shall be 
held by the Trustee, IN TRUST, 

as hereinafter provided. The 

Trustee shall not be responsible 
nor shall it undertake any 
responsibility for the amount of 
adequacy of, nor any duty to 
collect from the Grantor, any 
payments necessary to discharge 
any liabilities of the Grantor 
established by DHR. 

Section 4. Payment for 
Closure and Post-Closure Care. 
The Trustee shall make payments 
from the Fund as DHR shall 
direct, in writing, to provide 
for the payment of the costs of 
closure and/or post-closure care 
of the facilities c overe d by 



aims; except that: 

(i) Securities or other 
obligations of the Grantor, or 
any other ov.'ner or operator of 
the facilities, or any of their 
affiliates as defined in the 
Investment Company Act of 1940, 
as amended, 15 U.S.C. 80a-2(a), 
shall not ba acquired or held, 
unless they are securities or 
other obligations of the Federal 
or a State government; 

(ii) The Trustee is 
authorized to invest the Fund in 
time or demand deposits of the 
Trustee, to the extent insured 
by an agency of the Federal or 
State government; and 

(iii) The Trustee is 
authorized to hold cash awaiting 



investment 



distribution 



this Agreement , 



shall reimburse the Grantor or 
other persons as specified by 
DHR from the Fund for closure 
and post-closure expenditures in 
such amounts as DHR shall direct 

in writing. In addition, the 

Trustee shall refund to the 
Grantor such amounts as DHR 



uninvested for a reasonable time 
and without liability for the 
payment of interest thereon. 
Section 7. Commingling and 

Investment . The Trustee is 

The Trustee expressly authorized in its 
discretion = 

(a) To transfer from time 
to time any or all of the assets 



specifies in writing. 



Upon 



refund, such funds shall 
longer constitute part of the 
Fund as defined herein. 

Section 5. Payments 
Comprising the Fund. Payments 
made to the Trustee for the Fund 
shall consist of cash or 
securities acceptable to the 
Trustee . 

Section 6 , 
Management , 



of the Fund to any common, 
commingled, or collective trust 
fund created by the Trustee in 
which the Fund is eligible to 
participate, subject to all of 
the provisions thereof, to be 
commingled with the assets of 

other trusts participating 

therein: and 

(b) To purchase shares in 



any 



investment 



company 



Trustee 
The Trustee 



shall 



invest 



and 



reinvest 



the 



registered under the Investment 
Company Act of 1940, 15 U.S.C. 
80a-1 et seg., including one 
which may be created, managed. 

underwritten, or to which 

investment advice is rendered or 
the shares of which are sold by 



principal and income of the Fund the Trustee. The Trustee may 



and keep the Fund invested as a 
single fund, without distinction 
between principal and income, in 



vote 



such 



shares 



in 



its 



accordance 



with 



investment 



pol icies 



general 



discretion . 

Section 8. Express Powers 
of Trustee. Without in any way 



and limit ing 



the 



powers 



and 



guidelines which the Grantor may discretions conferred upon the 
communicate in writing to the Trustee by the other provisions 

bhis Agreement or by law, the 



Trustee from time 



subject , 



however .. 



to 
to 



time , 
the 



provisions of this Section. 



In 



of t} 

Trustee is e.xpressly authorized 

and empowered ; 

(a) To sell, exchange, 

convey, transfer, or otherwise 
managing the Fund, the Trustee dispose of any property held by 
shall discharge his duties with it, by public or private sale. 



invest ing , 



reinvesting, 



exchanging , 



sell ing , 



and 



respect to the trust fund solely 



No 



the 



interest 



of 



the 



person dealing with the 



Trustee shall be bound to see to 



706 



NORTH CAROLINA REGISTER 



the application of the purchase 
money or to inquire into the 
validity or expediency of any 
such sale or other disposition; 

(b) To make, execute, 
acknowledge, and deliver any and 
all documents of transfer and 
conveyance and any and all other 

instruments that may be 

necessary or appropriate to 
carry out the powers herein 
granted; 

(c) To register any 
securities held in the Fund in 
its own name or in the name of a 
nominee and to hold any security 
in bearer form or in book entry, 
or to combine certificates 
representing such securities 
with certificates of the same 
issue held by the Trustee in 
other fiduciary capacities, or 
to deposit or arrange for the 
deposit of such securities in a 
qualified central depositary 
even though, when so deposited, 
such securities may be merged 
and held in bulk in the name of 
the nominee of such depositary 
v;ith other securities deposited 
therein by another person, or to 
deposit or arrange for the 
deposit of any securities issued 
by the United States Government, 
or any agency or instrumentality 
thereof, with a Federal Reserve 
bank, hut the books and records 
of the Trustee shall at all 
times show that all such 
securities are part of the Fund; 

(d) To deposit any cash in 
the Fund in interest-bearing 
accounts maintained or savings 
certificates issued by the 

Trustee, in its separate 

corporate capacity, or in any 

other banking institution 

affiliated with the Trustee, to 
the extent in-^ured by an agency 

of the Federal or State 

government ; and 

(e) To compromise or 
o therwise adjust all claims in 
favor of or against the Fund. 

Section 9. Taxes and 
Expenses. All taxes of any kind 
that may be assessed or levied 
against or in respect of the 

Fund and all brokerage 

commissions incurred by the Fund 
shall be paid from the Fund. 
All other expenses incurred by 
the Trustee in connection with 
the administration of this 
Trust, including fees for legal 

services rendered to the 

Trustee, the compensation of the 
Trustee to the extent not paid 
directly by the Grantor, and all 

other proper charges and 

disbursements of the Trustee 
shall be paid from the Fund. 

Section 10. Annual 



Valuation. The Trustee shall 
annually, at least 30 days prior 
to the anniversary date of 
establishment of the Fund, 
furnish to the Grantor and to 
DHR a statement confirming the 

value of the Trust ■ Any 

securities in the Fund shall be 
valued at market value as of no 
more than 60 days prior to the 

anniversary date of 

establishment of the Fund. The 
failure of the Grantor to object 
in writing to the Trustee within 
90 days after the statement has 
been furnished the Grantor and 

DHR shall constitute a 

conclusively binding assent by 
the Grantor, barring the Grantor 
from asserting any claim or 
liability against the Trustee 

with respect to matters 

disclosed in the statement . 

Section 11. Advice of 
Counsel . The Trustee may from 
time to time consult with 
counsel, who may be counsel to 
the Grantor, with respect to any 
question arising as to the 
construction of this Agreement 
or any action to be taken 
hereunder . The Trustee shall be 
fully protected, to the extent 
permitted by law, in acting upon 
the advice of counsel . 

Section 12. Trustee 
Compensation. The Trustee shall 
be entitled to reasonable 
compensation for its services as 
agreed upon in writing from time 
to time with the Grantor. 

Section 13. Successor 
Trustee. The Trustee may resign 
or the Grantor may replace the 
Trustee, but such resignation or 

replacement shall not be 

effective until the Grantor has 
appointed a successor trustee 
and this successor accepts the 

appointment . The .successor 

trustee shall have the same 
povjors and duties as those 
conferred upon the Trustee 

hereunder . Upon the successor 

trustee's acceptance of the 
appointment, the Trustee shall 
assign transfer, and pay over to 
the successor trustee the funds 
and properties then constituting 
the Fund. If for any reason the 
Grantor cannot or does not act 
in the event of the resignation 
of the Trustee, the Trustee may 
apply to a court of competent 
jurisdiction for the appointment 
of a successor trustee or for 

instructions . The successor 

trustee shall ispecify the date 

on which it assumes 

administration of the trust in a 
writing sent to the Grantor, 
DHR, and the present Trustee by 
certified mail 10 days before 
such change becomes effective. 



NORTH CAROLINA REGISTER 



707 



Any expenses incurred by the 
Trustee as a result of any of 
the acts contemplated by this 
Section shall be paid as 
proyided in Section 9. 

Section 14. Instructions 

to the Trustee. All orders, 

requests, and instructions by 
the Grantor to the Trustee shall 
be in writing, signed by such 
persons as are designated in the 
attached Exhibit A or such other 
designees as the Grantor may 



designate 



by 



amendment 



to 



Exhibit A. The Trustee shall be 
fully protected in acting 
without inquiry in accordance 
with the Grantor's orders, 
requests, and instructions. All 

orders , requests , and 

instructions by the DHR to the 
Trustee shall be in writing, 
signed by the Secretary of DHR 
or his designee, and the Trustee 
shall act and shall be fully 



protected 



acting 



accordance vfith such orders, 
requests, and instructions. The 
Trustee shall have the right to 
assume, in the absence of 
written notice to the contrary, 
that no event constituting a 
change or a termination of the 
authority of any person to act 
on behalf of the Grantor or DHR 

hereunder has occurred. The 

Trustee shall have no duty to 
act in the absoncc cf such 

orders , requests , and 

instructions from the Grantor 
and/or DHR, except as provided 
for herein. 

Section 15. Notice of 

Payment . The Trustee shall 

notify DHR of payment to the 
trust fund by certified mail 
within 10 days following said 
payment to the trust fund. The 
notice shall contain the name of 
the Grantor, the date of 
payment, the amount of payment, 
and the current value of the 
trust fund. 

Section 16. Amendment of 
Agreement. This Agreement may 
be amended by an instrument in 
writing executed by the Grantor, 
the Trustee, and DHR, if the 
Grantor ceases to exist. 

Section 17. Irrevocability 
and Termination. Subject to the 
right of the parties to amend 
this Agreement as provided in 
Section 16, this- Trust shall be 
irrevocable and shall continue 
until terminated at the written 
agreement of the Grantor, the 
Trustee, and DHR. or by the 
Trustee and DHR, if the Grantor 

ceases to exist . Upon 

termination of the Trust, all 
remaining trust property, less 
final trust administration 



expenses, shall be delivered to 
the Grantor. 

Section 18. Immunity 
and Indemif ication. The Trustee 



shall 



not 



personal 



liability of any nature in 
connection with any act of 
omission, made in good faith, in 
the administration of this 
Trust, or in carrying out any 
directions by the Grantor or DHR 
issued in accordance with this 
Agreement ■ The Trustee shall be 
indemnified and saved harmless 
by the Grantor or from the Trust 
Fund, or both, from and against 
any personal liability to which 
the Trustee may be subjected by 
reason of any act or conduct in 
its official capacity, including 
all expenses reasonably incurred 
in its defense in the event the 
Grantor fails to provide such 
defense . 

Section 19. Choice 
of Law. This Agreement shall be 
administered, construed, and 
enforced according to the laws 
of the State of North Carolina. 

Section 20. Interpretation 



As used in this Agreement, words 
in the singular include the 
plural and words in the plural 

include the singular. The 

descriptive heading for each 
Section of this Agreement shall 
not affect the interpretation or 
the legal efficacy of this 
Agreement . 

In VJitness V.Tiereof the 

parties have caused this 

Agreement to be executed by 
their respective officers duly 
authorized and their corporate 
seals to be hereunto affixed and 
attested as of the date first 

above written: The parties 

below certify that the wording 
of this Agreement is identical 
to the wording specified in 
Section 264.151(a)(1) of 10 NCAC 
10F.0032(i) as such regulations 
were constituted on the date 
first above written. 

[Signature of Grantor] 

[Title] 

Attest! 
[Title] 
[Seal] 

[Signature of Trustee] 

Attest: 

[Title] 

[Seal] 

(2) The following is an 

example of the certification 
of acknowledgment which must 
accompany a trust agreement 
for a trust fund as 



specified 



-k!i_ 



Sections 



264. 143(a)and 264.145(a) or 
Sections 265.143(a) or 



708 



NORTH CAROLINA REGISTER 



265.145(a) of this chapter- 
State requirements may 

differ on the proper content 
of this acknowledgment. 
State of 
County of 
On this [date]> before me 

personally came [owner or 

operator] to me known, who, 
being by me duly sworn, did 
depose and say that she/he 



which we bind ourselves, our 
heirs , executors , 



administrators , 
and assigns 



successors , 
jointly and 



severally ; provided that, 

where the Suretv(ies) are 



corporations 



acting 



resides at [address]; 



that 



she/he 



[title] 



of 



[corporation], the corporation 
described in and which executed 
the above instrument; that 
she/he knows the seal of said 
corporation; that the seal 
affixed to such instrument is 
such corporate seal ; that it was 
so affixed by order of the Board 

of Directors of said 

corporation, and that she/he 
signed her/his name thereto by 
like order . 

[Signature of Notary 
Public] of Notary Public 

(b) A surety bond 
guaranteeing payment into a 
trust fund, as specified in 



co-sureties, we, the Sureties, 
bind ourselves in such sum 
"jointly and severally" only 
for the purpose of allowing a 

joint action or actions 

against any or all of us, and 
for all other purposes each 
Surety binds itself, jointly 

and severally with the 

Principal, for the payment of 
such sum only as is set forth 
opposite the name of such 



Surety, but if 



no 



limit of 



liability is indicated, the 
limit of liability shall be 
the full amount of the penal 
sum . 



Whereas said Principal 
is required, under the 



North 



Sections 



264. 143(b) 



or 



264.145(b) 



or 



Sections 



265.143(b) or 265.145(b) of this 
chapter, must be worded as 



follows , 



except 



that 



instructions in brackets are to 
be replaced with the relevant 
information and the brackets 
deleted : 

FINANCIAL GUARANTEE BOND 
Date Bond Executed: 
Effective Date: 
Principal ; [legal name and 



Carolina Solid Waste Management 
Act, to have a permit or 
intermim status in order to own 
or operate each hazardous waste 
management facility identified 
above, and 

Whereas said Principal is 
required to provide financial 
assurance for closure, or 
closure and post-closure care, 
as a condition of the permit or 
interim status, and 

Whereas said Principal 
shall establish a standby trust 
fund as is required when a 
surety bond is ur;ed to provide 
such financial assurance; 

Now, Therefore, the conditions 
of these obligation are such 



business address of owner or that if the Principal shall 

operator] 

Type of organization: 



[ insert 
"individual, "joint venture," 

"partnership, " or 

"corporation,"] 

State of Incorporation: 



faithfully, before the beginning 
of final closure of each 



Suretv( ies ) : 



business 
address (es 



[name(s) and 



LL 



EPA 



Identification Number, name, 
address, and closure and/or 
post-closure amount ( s ) for 
each facility guarnnteod by 
this bond [indicate closure 



and 



separately 
Total pena 



post-closure 



amounts 



Ll 



of bond: $ 

Surety's bond number; 

Know all Persons by These 
Presents , Tliat we , 



facility identified above, fund 
the standby trust fund in the 
amount ( s ) identified above for 
the facility. 

Or, if the Principal shall 
fund the standby trust fund in 
such amount ( s ) within 15 days 
after a final order to begin 
closure is issued by DHR or a 
U.S. district court or other 
court of competent jurisdiction. 

Or, if the Principal shall 

provide alternate financial 

assurance, as specified in 
Su bpart H of 40 CFR Parts 264 or 
265, adopted in North Carolina 
as 10 NCAC 10F .0032(i) and 



n033(h) 



the 



app l icable, and 



respect ivoly , 



ns 

obtain DHR's 



written 



Principal 



and 



Siiretv( ies ) 



approval 



of 



such 



hereto are firmly bound to the 
North Carolina Department of 
Human Resources (hereinafter 
called DHR), in the above 



assurance, within 90 days after 
the date notice of cancellation 



received 



.by_ 



both 



the 



Principal and DHR from the 



Suretv( ies ) , 



then 



this 



penal sum, for the payment of obligation shall be null and 



NORTH CAROLINA REGISTER 



709 



void, otherwise it is to remain 
in full force and effect . 

The Suretv(ies) shall became 
liable on this bond obligation 
only when the Principal has 
failed to fulfill the conditions 

described above . Upon 

notification bv DHR that the 
Principal has failed to perform 
as guaranteed bv this bond, the 
Suretv(ies) shall place funds in 
the amount guaranteed for the 
facilitv( ies ) into the standbv 
trust fund as directed bv DHR ■ 

The liability of the 

SuretvC ies ) shall not be 

discharged bv any payment or 

succession of payments 

hereunder> unless and until such 
payment or payments shall amount 
in the aggregate to the penal 
sum of the bond, but in no event 
shall the obligation of the 
Surety(ies) hereunder exceed the 
amount of said penal sum. 

The Surety (ies) may cancel 
the bond by sending notice of 
cancellation bv certified mail 



of 10 NCAC 10F ■0032Ci)' as such 
regulations were constituted on 
the date this bond was executed. 

Principal 
[Signature ( s ) 1 
[Name(s) ] 
[Title(s)] 
[Corporate seal] 

Corporate Suretv(ies) 
[Name and address] 
State of incorporation 
Liabiltv limit:$ 
[Signature ( s ) ] 
[Name(s) and title(s)] 
[Corporate seal] 
[For every co-surety, provide 
signatures ( s ) , corporate seal, 
and other information in the 
same manner as for the Surety 
above . ] 
Bond premiun: $ 



(c) A surety bond 
guaranteeing performance 



of 



to the Principal 



and 



DHR 



provided, 



however , 



that 



closure and/or post /closure 

care, as specified in Sections 
264■1'^3(c) or 264.145(c), must 
worded as follows, except 



be 
that 



the 



instructions 



cancellation shall not occur bracl<:ets are to be replaced with 
during the 120 days beginning on the relevant information and the 
the date of receipt of the bractcets deleted; 
notice of cancellation bv both 

as 



the Principal and DHR, 



evidenced 



h2L. 



the 



return 



receipts . 

The Principal may terminate 
this bond bv sending written 
notice to the Surety(ies), 
provided, however, that no such 
notice shall become effective 
until the Surety(ies) receivc(s) 

written authorization for 

termination of the bond bv DHR. 
[The following paragraph 
is an optional rider that may 



be 



included 



but 



not 



required . ] 

Principal and Suretv(ies) 
hereby agree to adjust the penal 
sum of the bond yearly so that 
it guarantees a new closure 



PERFORMANCE BOND 
Date bond e.xecuted: 
Effective Date: 

Principal : [legal name and 

business address of owner or 
operator ] 

Type of organization: [insert 
"individual," "joint venture," 

"partnership," or 

"corporation" ] 
State of incorporation; 
Suretv(ies): [name(s) 
and business address(es)] 

EPA Identification Number, 
name, address, and closure 
and/or post-closure amount ( s ) 
for each facility guaranteed 
by this bond [indicate closure 



and 



post-closure 



amounts 



and/or 



post-closure 



amount , 



provided that the penal sum does 
not increase by more than 20 
percent in any one year, and no 
decrease in the penal sum takes 
place without the written 
permission of DHR. 

In Witness Whereof, the 



separately] 

Total penal sum of 

bond: $ 

Surety's bond number: 

Know All Persons By Thes e 
Presents, That we, the Princ 
an d Suretv(ies) hereto 



ipal 



are 



firmly bound to 



the 



North 



Principal and Surety(ies) have 

executed this Financial Carolina Department of Human 

Guarantee Bond and h a ve affixed Resources (hereinafter called 

their seals on the date set DHR), i.i the above penal sum for 



forth above . 

The persons whose signatures 
appear below hereby certify that 
they arc authorized to execute 

t he surety bond on behalf of the provided that , 

Principal and Surety (ies) 



the payment of which we bind 
ourselves, our heirs, executors, 
administrators, successors, and 
assigns jointly and severally; 



where 



the 



and 



Surety (ies) are corporations 



that the wording of this surety acting as co-sureties, 
bond is identical to the wor 



the 



?ding 
specified in Section 264.15(b) 



Sureties, bind ourselves in such 
sv.m "jointly and severally" only 



710 



NORTH CAROLINA REGISTER 



for the purpose of allowing a 
joint action or actions against 
any or all of us. and for all 
other purposes each Surety binds 
itself, jointly and severally 
with the Principal, for the 
payment of such sum only as is 
set forth opposite the name of 
such Surety, but if no limit of 
liability is indicated, the 
limit of liability shall be the 
full amount of the penal sum ■ 

Whereas said Principal 
is required, under the North 
Carolina Solid Waste Management 
Act, to have a permit in order 
to own or operate each hazardous 

waste management facility 

identified above, and 

Whereas said Principal is 
required to provide financial 

assurance for closure , or 

closure and post-closure care, 
as a condition of the permit, 
and 

Whereas said Principal 
shall establish a standby trust 
fund as is required when a 
surety bond is used to provide 
such financial assurance; 

Now, Therefore, these 
conditions of this obligation 
are such that if the Principal 

shall faithfully perform 

closure, whenever required to do 
so, of each facility for which 
this bond guarantees closure, in 
accordance with the closure plan 
and other requirements of the 
permit as such plan and permit 
may bo amended, pursuant to all 

applicable laws , statutes , 

rules, and regulations, as such 
laws, statutes, rules, and 
regulations may be amended, 

And, if the Principal 
shall faithfully perform 



post-closure care 



of 



each 



facility for which this bond 
guarantees post-closure care, in 
accordance with the post-closure 
plan and other requirements of 
the permit, as such plan and 
permit may be amended, pursuant 

to all applicable laws , 

statutes, rules, and regulations 
as such laws, statutes, rules, 
and regulations may be amended, 
Or, if the Principal shall 

provide alternate financial 

assurance as 



specified 



Subpart H of 40 CFR Part 264, 
a dopted in North Carolina as 10 
NCAC 10F .0032(1) and obtain 
DHR's written approval of such 
assurance, within 90 days after 
the date notice of cancellation 
is received by both the 
Principal and DHR from the 



Surety ( ies ) , 



then 



this 



obligation shall be null and 
void, otherwise it is to remain 
in full force and effect . 

The Surety (ies) shall become 



liable on this bond obligation 
only when the Principal has 
failed to fulfill the conditions 
described above. 

Upon notification by DHR 
that the Principal has been 
found in violation of the 
closure requirements of 40 CFR 
Part 264. adopted in North 
Carolina as 10 NCAC 1 OF .0032, 
for a facility for which this 
bond guarantees performances of 
closure, the Suretv(ies) shall 

either perform closure in 

accordance with the closure plan 
and other permit requirements or 

place the closure amount 

guaranteed for the facility into 
the standby trust fund as 
directed by DHR. 

Upon notification by 
DHR that the Principal has been 
found in violation of the 
post-closure requirements of 40 
CFR Part 264, adopted in North 
Carolina as 10 NCAC 1 0F .0032, 
for a facility for which this 
bond guarantees performance of 



post-closure 



care. 



the 



Suretv(ies) shall either perform 
post-closure care in accordance 
with the post-closure plan and 
other permit requirements or 
place the post-closure amount 
guaranteed for the facility into 
the standby trust fund as 
directed by the DHR. 

Upon notification by DHR 
that the Principal has failed to 

provide alternate financial 

assurance as specified in 

Subpart H of 40 CFR Part 264. 
a dopted in North Carolina as 10 
NCAC 10F .0032. and obtain 

written approval of such 

assurance from DHR during the 90 
days following receipt by both 
the Principal and DHR of a 
notice of cancellation of the 
bond, the Surety(ies) shall 
place funds in the amount 
guaranteed for the f acility ( ies ) 
into the standby trust fund as 
directed by DHR. 

The Suretv(ies) hereby 

waive( s ) notification of 

amendments to closure plans, 

permits . appl icable laws , 

statutes, rules, and regulations 
and agrees that no such 
amendment shall in any way 
alleviate its (their) obligation 
on this bond. 

The liability of the 

Suretv( ies ) shall not be 

discharged by any payment or 

succession of payments 

hereunder, unless and until such 
payment or payments shall amount 
in the aggregate to the penal 
sum of the bond, but in no event 
shall the obligation of the 
Surety(ies) hereunder exceed the 
amount of said penal sum. 



NORTH CAROLINA REGISTER 



711 



The Suretv(ies) may cancel 
the bond by sending notice of 
cancellation by certified mail 
to the owner or operator and to 
DHR, provided, however, that 
cancellation shall not occur 
during the 120 days beginning on 
the date of receipt of the 
notice of cancellation by both 
the Principal and DHR, as 



evidenced 



jLiL 



the 



return 



receipts . 

The principal may terminate 
this bond by sending written 
notice to the Suretv(ies), 
provided, however, that no such 
notice shall become effective 
until the Suretv(ies) receive(s) 

written authorization for 

termination of the bond by DHR 

[The following paragraph 
is an optional rider that may be 
included but is not reguired.] 

Principal and Surety(ies) 
hereby agree to adjust the penal 
sum of the bond yearly so that 
it guarantees a new closure 

and/or post-closure amount, 

provided that the penal sum does 
not increase by more than 20 
percent in any one year, and no 
decrease in the penal sum takes 
place without the written 
permission of DHR. 

In VJitnoss Vv'hereof, 
The Principal and Surety(ies) 
have oxcuted this Performance 
Bond and have affixed their 
seals on the date set forth 
above . 

The persons whose 
signatures appear below hereby 
certify that they are authorized 
to execute this surety bond on 
behalf of the Principal and 
Surety(ies) and that the wording 
of this surety bond is identical 
to the wording specified in 
Section 264.15Hc) of 10 NCAC 
10F .OOSZCi) as such regulation 
was constituted on the date this 
bond was executed. 

Principal 

[Signatures ( s ) ] 

[Name(s)] 

[Title(s)] 

[Corporate seal] 

Corporate Surety(ies) 

[Names and address] 

State of incorporation: 

Liability limit: $ 

[Signature ( s ) ] 

[Name(s) and title(s)] 

[Corporate seal] 

[For every co-surety, provide 

signatures ( s ) , corporate seal, 

and other information in the 

same manner as for Surety 

above . ] 

Bond premium: $ 





(d) 


A letter 


of 


credit, as 


sp 


2cif ied 


in Sect 


ions 


264.143(d) 


or 


264 


145(d) 


or 


Sections 



265.143(c) or 265.145(c) of this 
chapter, must be worded as 



follows , 



except 



that 



instructions in brackets are to 
be replaced with the relevant 
information and the brackets 
deleted : 

IRREVOCABLE STANDBY LETTER 

OF CREDIT 

North Carolina Department of 



Human 



Resources Division 



of 



Health 



Services 



Solid 



and 



Hazardous 



Waste 



Management 



Branch 

Dear Sir or Madam; 

We hereby establish our 
Irrevocable Standby Letter of 
Credit No. in your favor, at 
the reguest and for the account 
of [owner's or operator's name 
and address] up to the aggregate 
amount of [in words] U. 



dollars $ 



, available upon 



presentation of 

(1) your sight draft, 
bearing reference to this letter 



of credit No . 



and 



(2) your signed statement 
reading as follows: "I certify 
that the amount of the draft is 
payable pursuant to regulations 
issued under authority of the 



North 



Carolina Solid Waste 



Management Act . " 

This letter of credit is 
effective as of [date] and shall 
expire on [date at least 1 year 
later], but such e.xpiration date 
shall be automatically extended 
for a period of [at least 1 
year] on [date] and on each 
successive 



expiration date, 



unless, at least 120 days before 
the current expiration date, we 
notify both you and [ owner's or 
operator's name] by certified 
mail that we have decided not to 
extend this letter of credit 
beyond the current expiration 
date . In the event you are so 
notified, any unused portion of 
the credit shall be available 
upon presentation of your sight 
draft for 120 days after the 
date of receipt by both you and 
[ owner's or operator's name], 
as shown on the the signed 
return receipts. 

Whenever this letter of 
credit is drawn on, under, and 
in compliance with the terms of 
this credit, we shall duly honor 
such draft upon presentation to 
us, and we shall deposit the 
amount of the draft directly 
into the standby trust fund of 
[owner's or operator's name] in 

accordance with your 

instructions . 

We certify th^t the wording 
of this letter of credit is 



identical 



to 



the wording 



specified in Section 264.151(d) 
of 10 NCAC 10F .0032(i) as such 



712 



NORTH CAROLINA REGISTER 



regulations were constituted on 
the date shown immediately 



below ■ 



title(s) 



of 



Siqnature( s ) 



and 



official ( s ) 



of 



issuing institution] 
[Date] 

This credit is subject to 
f insert "the most recent 
edition of the Uniform Customs 
and Practice for Documentary 
Credits, published by the 



International 



Chamber 



of 



Commerce" 



or "the Uniform 



Commercial Code"] 

(e) A certificate of 
insurance as specified 



Sections 



264. 143(e) 



or 



264. 145(e) 



or 



Sections 



265.143(d) or 265.145(d) of this 
chapter. must be worded as 



follows , 



except 



that 



instructions in brackets are to 
be replaced with the relevant 
information and the brackets 
deleted : 

Certificate of Insurance 
for Closure or Post-Closure Care 

Name and Address of Insurer 
(herein called the "Insurer"): 

Name and Address of Insured 
(heroin called the "Insured"): 
Facilities covered: [List for 

each facility: The EPA 

Identification Number, name, 
address, and the amount of 
insurance for closure and/or 
the amount for post-closure 
care (these amounts for all 
facilities covered must total 
the face amount shown below).] 
Face Amount : 
Policy Number: 
Effective Date: 
The Insurer hereby certifies 
that it has issued to the 
Insured the policy of insurance 
identified above to provide 
financial assurance for [insert 

"closure" or "closure and 

p ost-closure care" or 

"post-closure care"] for the 
facilities identified above. 
The insurer further warrants 
that such policy conforms in all 
respects with the requirements 
of 40 CFR 264.143(e) and 
264.145(e), adopted in North 
Carolina as 10 NCAC 1 0F 



.0032(i), 



265. 143(d) 



and 



265.145(d), adopted in North 
Carolina as 10 NCAC 10F 
.0033(h), as applicable and as 

such requlat ions were 

constituted on the date shown 
immediately below. It is agreed 
that any provision of the policy 

inconsistent with such 

regulations is hereby amended to 
eliminate such inconsistency. 

Whenever requested by 
the North Carolina Dep a rtment of 
Human Resources (DHR), the 
Insurer agrees to furnish to DHt^ 
a duplicate original of the 



policy listed above, including 
all endorsements thereon. 

I hereby certify that 
the wording of this certificate 
is identical to the wording 
specified in Section 264.151(e) 
of 10 NCAC 10F .0032(i) as such 
regulations were constituted on 
the date shown immediately 
below ■ 

[Authorized signature 

for Insurer] 

[Name of person 

signing] 

[Title of person 

signing] 

Signature of witness 

notary : 

[Date] 

(f) A letter from the 
chief financial officer, as 
specified in Sections 264.143(f) 

or 264 .145(f) or Sections 

265.143(e) or 265.145(e) of thi s 
chapter, must be worded as 



follovjs , 



except 



that 



instructions in brackets are to 
be replaced with the relevant 
information and the brackets 
deleted : 

LETTER FROM CHIEF 
FINANCIAL OFFICER 
[North Carolina Department 
of Human Resources, Solid and 



Hazardous 



Waste 



Management 



Branch, Post Office Box 2091, 
Raleigh, N.C. 27602-2091. 

I am the chief financial 

officer of 
[name and address of firm] . 
This letter is in support of 
this firm's use of the financial 
test to demonstrate financial 
assurance, as specified in 
Subpart H of 40 CFR Parts 264 
and 265. adopted by reference in 
North Carolina as 10 NCAC 10F 

.0032(1) and .0033(h), 

respectively. 

[Fill out the following 

five paragraphs regarding 

facilities and associated cost 
estimates. If your firm has no 
facilities that belong in a 

particular paragraph, write 

"None" in the space indicated. 
For each facility, include its 
EPA Identification Number, name, 
address, and current closure 

and/or post-closure cost 

est imates . Identify each cost 

estimate as to vjhether it is for 
closure or post-closure care.] 

1 ■ This firm is the owner 
or operator of the following 
facilities which are in the 
State of North Carolina for 
which financial assurance for 
closure of post-closure care is 

demonstrated through the 

financial test specified in 
Subpart H of 40 CFR Parts 264 
and 265 adopted in North 
Carolina as 10 NCAC IOF' .0032(1) 



NORTH CAROLINA REGISTER 



713 



and ■0033(h) respectively. The to EPA or a state through the 

current closure and/or financial test or any other 

post-closure cost estimates financial assurance mechanism 

coyered by the test are shovm specified in Subpart H of 40 CFR 

for each facility: Parts 264 and 265 or equivalent 

2. This firm guarantees, or substantially equivalent 
through the corporate guarantee State mechanisms. The current 
specified in Subpart H of 40 CFR closure and/or post-closure cost 
Parts 264 and 265, adopted in estimates not covered by such 
North Carolina as 10 NCAC 10F financial assurance are shown 

■ 0032(i) and .0033(h) for each facility; 

respectively, the closure or 5. This firm is the owner 

post-closure care of the or operator of the following UIC 

following facilities located in facilities for which financial 

the State of North Carolina assurance for plugging and 

owned or operated by abandonment is required under 

subsidiaries of this firm. The Part 144. The current closure 

current cost estimates for the cost estimates as required by 40 

closure or post-closure care so CFR 144.62 are shown for each 

guaranteed are shown for each facility : 

facility ; This firm [insert "is 

3 . In other states where required" or "is not required"] 
EPA or some designated authority to file a Form 1 OK with the 

is administering the financial Securities and Exchange 

requirements of Subpart H of 40 Commission (SEC) for the latest 

CFR parts 264 or 265, this firm, fiscal year. 

as owner or operator or The fiscal year of 

guarantor , is demonstrating this firm ends on [month, day], 

financial assurance for the The figures for the following 

closure or post-closuro care of items ma r ked with an asterisk 

the following facilities through are derived from this firm's 

the financial test and/or independently audited, year-end 

corporate guarantee specified in financial statements for the 

Subpart H of 40 CFR Parts 264 latest completed fiscal year, 

and 265 or through use of a test ended [date ] . 

equivalent or substantially [Fill in Alternative I 

equivalent to the financial test if the criteria of paragraph 

specified in Subpart H of 40 CFR (f)(1)(i) of Sections 264.143 or 

parts 264 and 265. The current 264.145, or paragraph (e)(1)(i) 

closure and/or post-closure cost of Sections 265.143 or 265.145 

estimates covered by such a test of this chapter are used. Fill 

are shown for each facility: in Alternative II if the 

4 . This firm is the owner criteria of paragraph (f)(1)(ii) 
or operator of the following of Sections 264.143 or 264.145, 

hazardous waste management or of paragraph (e)(1)(ii) of 

facilities for which financial Sections 265.143 or 265.145 of 

assurance for closure or, if a this chapter are used.] 
disposal facility, post-closure 

care, is not demonstrated either 

ALTERNATIVE I 

1 ■ Sum of current closure and post-closure 

cost estimates [total of all cost estimates 

shown in the five paragraphs above] $ 

X2 . Total liabilities 

[if any portion of the 

closure or post-closure cost estimates is 

included in total liabilities, you may 

deduct the amount of that portion from this 

line and add that amount to lines 3 and 4] $ 

x3 . Tangible net worth § 

X4. Net worth $ 

^5. Current assets I 

x6 . Current liabilites I 

7. Net working capital 

[line 5 minus line 6] $ 

X8 . The sum of not income plus depreciation, 

depletion, and amortization $ 

X9 . Total assets in U.S. (required only if less 

than 90/^ of firm's assets are located in the 

U.S. $ 



YES NO 



10. Is line 3 at least $10 million? 



11. Is line 3 at least 6 times lint, 1? 



714 NORTH CAROLINA REGISTER 



12. Is line 7 at least 6 times line 1? 




)(13. Are at least 90^. of firm's assets located 




in the U.S.? If not, complete line 14 




14. Is line 9 at least 6 times line 1? 


15. Is line 2 divided bv line 4 less than 2.0? 


16. Is line 8 divided bv line 2 qreater than 0, 


. 1? 


17. Is line 5 divided bv line 6 qreater than 1 


.5? 



ALTERNATIVE II 

1 ■ Sum of current closure and post-closure cost 
estimates [total of all cost estimates shown 
in the five paraqrpahs above] 

2. Current bond rating of most recent issuance 
of this firm and name of rating service 

3. Date of issuance of bond 



Date of maturity of bond 



*5. 



X6, 



Tangible net worth [if anv portion of the 
closure and post-closure cost estimates is 
included in "total liabilities" on your firm's financial 
statements, you may add the 
amount of that portion to this line] $ 

Total assets in U. S. (required only if less 
than 90^ of firm's assets are located in the 
U.S. ) $ 



Yes 



Is line 5 at least $10 millic 



No 



8. Is line 5 at least 6 times line 1? 



X9 . Are at least 90?^ of firm's assets located 



in the U.S.? If not, complete line 10 



10. Is line 6 at least 6 times line 1? 



I hereby certify that 
the wording of this letter is 

identical to the wordi ng 

specified in Section 264.151(f) 
of 10 NCAC lOF ■0032(i) ns such 
regulations were constituted on 
the date shown immediately 
below ■ 

[Signature ] 

[Name] 

[Title] 

[Date! 

(h) A corporate qurantecr 

as specified in Sections 

264.143(f) or 264.145(f) or 



Sections 



265. 143(e) 



265.145(e) of this chapter, must 
be worded as follows, except 
that instructions in brackets 
are to be replaced with the 
relevant information and the 
brackets deleted: 

CORPORATE GUARANTEE 
FOR CLOSURE OR 
POST-CLOSURE CARE 
Guarantee made this [date] bv 
[name of guaranteeing entity], 

a business corporation 

organized under the laws of 
the State of [insert nnmc of 
State], herein referred to as 

guarantor , to the North 

Carolina Department of Human 
Resources (DHR), obligee, on 



behalf 



[owner 



of our subsidiary 



operator ] 



of 



[business address]. 

Note: All requirements in 
this document referenced as 40 
CFR 264 have been adopted in 
North Carolina as 10 NCAC 10F 
.0032, and all requirements 



referenced as 40 CFR 265 have 
been adopted in North Carolina 
as 10 NCAC lOF .0033. 
Recitals 

1 . Guarantor meets or e.xceeds 
the financial test criteria 
and agrcos to comply with 
t he reporting requirements 
for guarantors as specified 

in 40 CFR 264. 143(f), 

264.145(f), 265.143(e), and 
265. 145(e) . 
(2) [Owner or Operator] owns 
or operates the following 
hazardous waste management 
facilitv( ies ) covered bv 

this guarantee: [List for 

each facility: EPA 

Identification Number, name, 

and address. Indicate for 

each whether guarantee is 

for closure. post-closure 

care , or both . ] 

3. "Closure plans" and 

"post-closure plans" as used 

below refer to the plans 

maintained as reguired by 

Subpart G of 40 CFR Parts 264 
and 265 for the closure and 
post-closure care of facilities 
as identified above. 

4 . For value received from 

[owner or operator], guarantor 
guarantees to DHR that in the 
event that [owner or operator] 
fails to perform [insert 
closure," "post-closure care" 
or "closure and post-closure"] 
of the above f acilitv( ies ) in 
accordance with the closure or 
post-closure plans and other 
permit or interim status 
requirements whenever required 



NORTH CAROLINA REGISTER 



715 



to do so, the guarantor shall 
do so or establish a trust 
fund as specified in Subpart H 
of 40 CFR Part 264 or 265, as 
applicable, in the name of 
[owner or operator] in the 
amount of the current closure 
or post-closure cost estimates 
as specified in Subpart H of 
40 CFR Parts 264 and 265. 
5. Guarantor agrees that if, 
at the end of any fiscal 
year before termination of 



this 



guarantee , 



the 



guarantor fails to meet the 
financial test criteria, 
guarantor shall send within 
90 days, by certified mail, 
notice to the DHR and to 
[owner or operator] that he 
intends to proyide alternate 



financial 



assurance 



specified in Subpart H of 40 
CFR Parts 264 or 265, as 
applicable, in the name of 
[owner or operator]. Within 
120 days after the end of 



such 



fiscal 



year, 



the 



guarantor shall establish 

assurance 



such 



financial 



unless [owner or operator] 
has done so. 
6. The guarantor agrees to 

notify the DHR by certified 



mail , 



of a voluntary or 



involuntary proceeding under 
Title II (Bankruptcy), U.S. 
Code, naming guarantor as 
debtor, within 10 days after 

commencement of the 

proceeding . 
7. Guarantor agrees t hat 

within 30 days after being 
notified by the DHR of a 
determination that guarantor 



no 



longer 



meets 



the 



financial test criteria or 
that he is disallowed from 
continuing as a guarantor of 



closure 



9. Guarantor agrees to remain 
bound under this guarantee 
for so long as [owner or 
operator] must comply with 
the applicable financial 
assurance reguirements of 
CFR Parts 
for the 



Subpart H of 40 
264 and 265 



above-1 isted 



facilities , 



except that guarantor may 
cancel this guarantee by 
sending notice by certified 
mail to DHR and to [owner or 
operator], such cancellation 



to 



become 



effective 



earlier than 120 days after 
receipt of such notice by 
both [owner or operator], as 
evidenced by the return 
receipts . 
10. Guarantor agrees that if 
[owner or operator] fails to 
provide alternate financial 
assurance as specified in 
Subpart H of 40 CFR Parts 
264 or 265, as applicable, 
and obtain written approval 
of such assurance from DHR 
within 90 days after a 
notice of cancellation by 
the guarantor is received by 



DHR 



from 



guarantor , 



guarantor shall provide such 



alternate 



financial 



assurances 



in the 



name 



of 



[owner or operator]. 
1 1 . Guarantor e.xpresslv waives 
notice of acceptance of this 
guarantee by DHR or by 



[owner 



operator] 



Guarantor also expressly 
waives notice of amendements 
or modification of the 
closure and/or post-closure 
plan and of amendments or 



modifications 



of 



the 



care , 



he 



or post-closure identical 



facility permit (s). 
I hereby certify that 
the wording of this guarantee is 



to 



the 



wording 



alternate 



shall establish specified in Section 264.151(h) 

of 10 NCAC 10F .0032(1) as such 
regulations were constituted on 



financial 



assurance as specified in 
Subpart H of 40 CFR Parts 
264 or 265, as applicable, 
in the name of [owner or 
operator] unless [owner or 
operator] has done so. 
8. Guarantor agrees to remain 
bound under this guarantee 
notwithstanding any or all 
of the following: amendment 



modification 



of the 



closure 



or 



post-closure 



plan , 



amendment 



modification of the permit, 
the e.xtension or reduction 
of the time of performance 
of clo?:ure or post-closure, 
or any other modification or 
alteration of an obligation 
of the owner or operator 
pursupnt to 40 CFR Parts 264 
or 265. 



the date first above written. 

Effective date: 

[Name of guarantor] 

[A uthorized signature for 

guarantor] 

[Name of person signing] 

[Title of person signing] 

Signature of witness 

or notary : 

(i) A hazardous waste 
facility liability endorsement 
as reguired in Sections 264.147 
or 265.147 must he worded as 



follov)s , 



e.xcept 



that 



instructions in brackets are to 
bo replaced with the relevant 
information and the brackets 

HAZA RDOUS WASTE FACILITY 

LIABILITY ENDORSEMENT 
( 1 ) This endorsement 



716 



NORTH CAROLINA REGISTER 



certifies that the policy to 

which the endorsement is 

attached provides liability 
insurance covering bodily injury 

and property damage in 

connection with the insured's 



obligation 



to 



demonstrate 



financial responsibility under 
40 CFR 264.147 or 265.147, 
adopted in North Carolina as 10 
NCAC IGF .0032Ci) and .0033(h) 
The coverage 



respectively. 



applies 



at 



[list 



EPA 



Identification Number, name, and 
address for each facility] for 
[insert "sudden accidentia! 
occurrences , " 



"nonsudden 



accidental 



occurrences , 



"sudden and nonsudden accidental 
occurrences;" if coverage is for 
multiple facilities and the 



coverage 



different 



for 



different facilities, 



indicate 



which facilities are insured for 
sudden accidental occurrences, 
which are insured for nonsudden 
accidental occurences, and which 

are insured for both], The 

limits of liability are [insert 
the dollar amount of the "each 
occurrence" and "annual 



aggregate" 



limits 



of 



the 



Insurer's liability], exclusive 
of legal defense costs .x 

(2) The insurance afforded 
with respect to such occurrences 
is subject to all of the terms 
and conditions of the policy; 
provided, however, that any 

provisions of the policy 

inconsistent with subsections 
(a) through (e) of this 
Paragraph 2 are hereby amended 
to conform with subsections (a) 
through ( e ) : 

(a) Bankruptcy or 
insolvency of the insured 
shall not relieve the 
Insurer of its obligations 
under the policy to which 

this endorsement is 

attached . 

(b) The Insurer is liable 
for the payment of amounts 

within snv deduct ible 

applicable to the policy, 
with a right of 



reimbursement 



±iL 



the 



insured for any such 
payment made by the 
Insurer. This provision 
does not apply with 
respect to that amount of 
any deductible for which 
coverage is demonstrated 
as specified in 40 CFR 
264.147(f) or 265.147(f) 
adopted in North Carolina 
as 10 NCAC 10F .0032(i) 

and ■0033(h), 

respectively . 

(c) Whenever reguested bv 

the North Carolina 



Department 



of 



Human 



Resources (DHR) the 

Insurer agrees to furnish 
to DHR a signed duplicate 
original of the policy and 
all endorsements. 

(d) Cancellation of this 
endorsement , whether by 

the Insurer or the 

insured, will be effective 
only upon written notice 
and only after the 
expiration of sixty (60) 
days after a copy of such 
written notice is received 
by DHR. 

(e) Any other termination 
of this endorsement will 
be effective only upon 
written notice and only 
after the expiration of 30 
days after a copy of such 
written notice is received 
by DHR. 

Attached to and forming 

part of policy No. iussed bv 

[name of Insurer], herein called 
the Insurer, of [address of 
Insurer] to [name of insured] of 

[address] this day of , 1 9 

.; The effective date of said 

policy is day of ,19 

I hereby certify that the 
wording of this endorsement is 



identical 



to 



the wording 



specified in Section 264.151(1) 
of 10 NCAC 10F .0032(1) as such 
regulation was constituted on 
the date first above writtem and 
that the Insurer is licensed to 



transact 



the 



business 



of 



insurance , 



or eligible to 



provide insurance as an excess 
or surplus lines insurer, in one 
or more states. 

[Signature of Authorized 

Representative of Insurer] 

[Type name] 

[Title. Authorized 

Representative of 

[name of Insurer] 

[Address of Representative] 
Xlf the endorsement is for 
an excess insurance policy, 
insert the following sentence: 



"$ 



each occurrence and $ 



annual aggregate in excess of 
the underlying limits of $ 

each occurence and $ 

annual aggregate . " 

(j) A certificate of 
liability insurance as required 
in Sections 264.147 or 265.147 
must be worded as follows, 
except that the instructions in 
brackets are to be replaced with 
the relevant information and the 
brackets deleted; 

HAZARDOUS WASTE FACILITY 

CERTIFICATE OF 

LIABILITY INSURANCE 

1. [Name of Insurer], 

(the "Insurer" ) , of 



[address 



of 



Insurer] 



hereby certifies that it 



NORTH CAROLINA REGISTER 



717 



has 



issued 



liability 



insurance covering bodily 
injury and property damage 
to [name of insured], (the 
"insured"), of [address of 
insured] in connection 



with 



the 



insured ' s 



obligation to demonstrate 
financial responsibility 
under 40 CFR 264.147 or 
265. T47 adopted in North 
Carolina as 10 NCAC 1 0F 
.0032(i) or .0033(h) 



respect ivelv . 



The 



coverage applies at [list 
EPA Identification Number, 
name, and address for each 

f acil ity] for [ insert 

"sudden accidental 

occurrences," "nonsudden 
accidental occurrences," 
or "sudden and nonsudden 
accidental occurrences"; 



if 



coverage 



for 



multiple facilities and 
the coverage is different 
for different facilities, 
indicate which facilities 
are insured for sudden 



accidental 



occurrences , 



which are insured for 



nonsudden 



accidental 



occurences, and which are 

insured for both]. The 

limits of liability are 
[insert the dollar amount 
of the "each occurrence" 
and "annual aggregate" 
limits of the Insurer's 
liability], exclusive of 
legal defense costs. The 
coverage is provided under 

policy number j. 

issued on [date]. The 

effective date of said 
policy is [date] The 
expiration date of said 
policy is [date]. 
2. The Insurer further 

certifies the following 



with respect 



to 



the 



insurance 



described 



Paragraph 1 : 

(a) Bankruptcy or 
insolvency of the insured 
shall not relieve the 
Insurer of its obligations 
under the policy. 

(b) The Insurer is liable 
for the payment of amounts 

within any deductible 

applicable to the policy 
with a right of 

by the 



reimbursement 



insured for any such 



payment made 



by 



the 



Insurer . 



The provision 



does 



n ot appl y with 



respect to that amount of 
any deductible for which 
coverage is demonstrated 
as specified in 40 CFR 
264.147(f) or 265.147(f), 
adopted in North Carolina 



as 10 NCAC 10F .0032 (i) 
or .0033(h) respectively, 
(c) Whenever reguested 
by DHR the Insurer agrees 
to furnish to DHR a signed 
duplicate original of the 



policy 



and 



all 



endorsements . 

(d) Cancellation of the 
insurance, whether by the 
Insurer or the insured, 
will be effective only 
upon written notice and 
only after the expiration 
of 60 days after a copy of 
such written notice is 
received by DHR. 

(e) Any other termination 
of the insurance will be 

effective only upon 

written notice and only 
after the expiration of 30 
days after a copy of such 
written notice is received 
by DHR. 

I hereby certify that 

the wording of this 

instrument is identical to| 
the wording specified in 
Section 264. 151 (i) of 10 
NCAC 10F .0032(1) as such 
regulation was constituted 
on the date first above 



written , 



and 



that 



the 



Insurer 



IS 



licensed to 



transact the business of 
insurance, or eligible to 
provide insurance as an 
excess or surplus lines 



insurer , 



m 



one 



or 



more 



states . 

[Signature of authorized 
representative of Insurer] 
[Typed name] 
[Title], Authorized 
representative of 
[Name of Insurer] 
[Address of 
Represent at ive ] 
(Jc) The provisions for 
"Tanl<s" contained in 46 Fed. 
Reg. 2,867, 2,868, 2,895, 
and 35,249 (1981) [to be 
codified in 40 CFR 264.190 
to 264.200 (Subpart J)] have 
been adopted by reference as 
amended by 46 Fed. Reg. 
35,249 (1981 ); 50 Fed. Reg. 
2004 (1985); and 51 Fed. 
Reg. 25,472 to 25,478, and 
29,430 (1986). 

(q) (2) (D) hazardous waste 
storage and treatment 
facilities for liquied waste 
that is classified as EP 
toxic, toxic, or acutely 
toxic and is stored or 
treated in tanlcs or 
containers shall not be 
located : 

(iii) "In an area that 
will allow direct surface 
or subsurface discharge to 
yVf WSI, AH WAII or SA 



718 



NORTH CAROLINA REGISTER 



waters or a Class III 
Reservoir as defined in 15 
NCAC 2B .0200 and 10 NCAC 
lOD .0702C6), which are 
adopted by reference;" 
(q) (4) (A) A hazardous 
waste landfill, long-term 
storage or a new surface 
impoundment facility shall 
not be located: 
(iii) "In an area that 
will allow direct surface 
or subsurface discharge to 
Ai WSI, AH WAII or SA 
waters or a Class III 
Reservoir as define in 15 
NCAC 2B .0200 and 10 NCAC 
lOD .0702(6), which are 
adopted by reference;" 

.0034 INTERIM STATUS 
STANDARDS FOR 
PERMITTING- PART 270 

(b) The following provisions 
for additional permitting 
requirements contained in 48 
Fed. Reg. 14,233 to 14,241, and 
30,114 (1983) [to be codified in 
40 CFR 270 (Subpart B, Permit 
Application)] have been adopted 
by reference as amended by 48 
Fed. Reg. 39,622 (1983); 50 Fed. 
Reg. 2006, 28,751, and 28,752 
(1985); and 51 Fed. Reg. 10,176, 
16,458, and 25,486 and 29.431 
(1986). 

(11) 40 CFR 270.20, Specific 
Part B Information 
Requirements for Landfill 
Land Treatment Facilities. 

(12) 40 CFR 270.21, Specific 
Part B Information 
Requirements for Land 
Tr e atm e n t facili t i e s 
Landfill. 

.0041 REQUIREMENTS: HAZARDOUS 
WASTE PROGRAM - PART 271 

The following provisions 
for the "sharing of information" 
[to be codified in 40 CFR 271.1 
■to and 271.17] have been adopted 
by reference as amended by 50 
Fed. Reg. 28,754 (1985) and 51 
Fed. Reg. 10,176, and, 25,486, 
28,685, 29,431, 33,720, 33,721, 
and 33,722 (1986). 

SUBCHAPTER 10G - SOLID 
WASTE MANAGEMENT 

SECTION .0700 - ADMINISTRATIVE 
PENALTY PROCEDURES 

.0701 ADMINISTRATIVE 
PENALTIES 

The following rules provide 
procedures and standards 
governing the assessment, 
remission, mitigation and appeal 
of administrative penalties 
imposed by the division under 
the Solid Waste Management Act, 
Article 9 of Chapter +36 130A of 



the North Carolina General 
Statutes and 10 NCAC 10G. 

.0703 PROCEDURE FOR 

ASSESSMENT: REVOCATION 
OF PERMIT 

(c) In addition to any 
assessment that might be 
appropriate, the division may 
suspend or revoke the permit of 
any facility in accordance with 
G . S . 1 30A-23 upon findin g tliat a 
c ondi t ion exists which -rs xyr may 
b e com e injurious tr> th e p ubli c 
h e alth or tlte e nvironment , or 
upon findin g tliat "Hre facili t y' s 
p e rmit wars issu e d bas e d upon 
incoL ' r e ct or inadequat e 
information tliat mat e rially 
affe cte d t+re p e rmit decision. 
Th« pe rmi t hold e r shall b« giv e n 
notic e t+tatr tli e re has beien a 
t e ntative decision try suspend or 
r e vok e the p e rmit arrd tha t nrt 
adminis t ra t iv e I ' t e ar ing will b« 
h e ld -rn accordanc e wi t h ■Ht« 
r ul e s contained in +& N C AC +6 
. 0200 at- whi c h the pe r m i t hold e r 
itray cliall e ng e -th* p e rmit 
levocat ion . 

■fd-)- -tf t+t« viola t ion 
o^ t+re rul e s or iravt pr e s e nts an 
im m inen t hazard to the p ublic 
1 - i e alth or th e e iivioronm e n t trs 
d et ermined by t+re division, "the 
permi t sliall b« r e vok e d 
imm e dia te ly . No t ic e vf the 
revoca t ion and the righ t t^ 
appeal shall be giv e n forthwi t h 
to ■Hre permit holder . 

.0704 PAYMENT: HEARING: 

REMISSION/REDUCTION 
(a) Within 30 days after 
receipt of notification of a 
penalty assessment, the 
respondent must tender payment, 
submi t -in writing a r e qu e s t for 
an ad m inistrat iv e h e a r ing 
sp e cifying all t h e fac t ual or 

or 

for 

on 

tlie 

why 



l e gal issu e s -in dispute , 
submit in writing a request 
an administrative hearing 
re m ission or reduction o-f 
p e nal t y stating the r e asons 



in 6-rS-r 150A 23 
5-2-r All appeals 



strch request -irs justified . 
Wher e a liea r in g -irs r e quested, irt 
sjial 1 be iiel d 'in accoi' dance with 
tlte rul e s contained -in +0 NCAG 
4B . 020 and 

thr o ugh 150A 

shall be made in accordance with 
G.S. 1508 and 10 NCAC IB. 

■friri- Wiiore a te n t a t ive 
d e cision has b e en mad e to r e vok e 
■the p e rmi t of a solid was te 
managemen t facility or where a 
per m i t has been re vok e d, t lt e 
divisi o n shall scliedul e a 
liearing to he h e ld within 3^ 
days af te r "the respond e n t has 
rec e iv e d notifica t ion of t+te 
penalty assessment jtnd ■Hre 
t enta t iv e decision to r e vok e his 



NORTH CAROLINA REGISTER 



719 



p e rmit or t h e l e vocat iui ' i trf t h e 
permi t . Guch li e ar i»c; -rs tts ire 

sclT c dul e d and conducted -in 
ai-i-ur daji(- e with rul e s coiitaliied 
in -l-e HGAe +B .0200. A* -Htts 
hearin g . tl ' i e re spond e nt m us t 
pr e s e n t all challenij e a. regardiiit) 
t li e p e nal t y ass e ssm e nt arrd 
p e rmit r e vocation . 

.0705 STAY OF PENALTY 
ASSESSMENT 

When an administrative 
hearing is requested for a 
purpose other than remission or 
reduction of the penalty 
assessed, the penalty will be 
stayed as of the date t+re 
division r e c e iv es t h e h e aring of 
receipt of the request bv the 

Office of Administrative 

Hearings until service of the 
final decision or other 
settlement of the matter. 

.0706 WAIVER OF 

ADMINISTRATIVE 
HEARING 

C a ) Tile respondent may for 
good cause , r e ques t a 

con t inuanc e o-f t h e hear ing . Tire 
h e arin g offic e r will determin e 
Tf sucli a continuance should irs 
gi anted err deni e d arrd sl ' i j11 stj 
iiif ui 1 11 t+re res p ond e n t erf irirs 
decisi o n n± least orre diry p r ior 
•bo t+re bclieduled liear ings . 

.0707 REFERRAL 

If any administrative penalty 
as finally assessed is not paid 
within 60 days after receipt of 
notice of penalty assessment 
where no administrative hearing 
was requested or within 60 days 
after service of a written copy 
of the decision as provided for 
in G.S. 150A 3G 150B-36 where 
an administrative hearing was 
requested, the division shall 
request the Attorney General to 
commence an action to recover 
the amount of the assessment. 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the Division of Mental 
Health, Mental Retardation and 
Substance Abuse Services intends 
to adopt and amend regulations 
cited as 10 NCAC 14C .1014, 
.1107, .1125, .1138, .1142, 
.1146. 

The proposed effective date of 
this action is June 1, 1987. 



Statutory Authority: G.S, 

122C-112; 122C-141; 122C-143; 

122C-144; 122C-146; 122C-147 

122C-150; 122C-271; 143B-10 

159-8; & S.L. 1981, C. 1007 
S.L. 1983, C. 864. 



The public hearing will be 
conducted at 10:45 a.m. on 
February 18, 1987 at The 
Governor's Room, Sheraton 
Crabtree, 4501 Creedmore Road, 
Raleigh, N.C. 

Comment Procedures: Any 
interested person may present 
his/her views and comments by 
oral presentation at the hearing 
or by submitting a written 
statement. Persons wishing to 
make oral presentations should 
contact: Jackie Stalnaker, APA 
Coordinator, Division of Mental 
Health, Mental Retardation and 
Substance Abuse Services, 325 N. 
Salisbury Street, Raleigh, North 
Carolina 27611. (919) 733-7971 
by February 17, 1987. The 
hearing record will remain open 
for written comments for 30 days 
from January 19, 1987 through 
February 17, 1987. Written 
comments must be sent to the APA 
Coordinator at the address 
specified above by February 17, 
1987 and must state the proposed 
rule or rules to which the 
comments are addressed. 

CHAPTER 14 - MENTAL HEALTH: 
GENERAL 

SUBCHAPTER 14C - GENERAL RULES 

SECTION .1000 - ACCOUNTING 

STANDARDS FOR ALL RECIPIENTS 
OF FUNDS ADMINISTERED 
BY THE DIVISION 

.1014 EXPENDITURE OF 

CATEGORICAL FUNDS 
(a) The division shall allow 
area programs to budget division 
categorical funds within cost 
centers that also include, but 
are not limited to, local funds, 
area matching funds, federal 
funds or other division 
categorical funds. When area 
programs elect to budget 
division categorical funds 
within a cost center with such 
other funds, tlie division shall 
consider the division 
categorical funds to be expended 
under the following criteria: 
( 1 ) For all area program 

operated services, privat e 
nun profit gi oup l - ion e s ■ arrd 
pr ivat e non profi t alcoliol 
and dru g programs contracted 
group homes, and other 



contracted 



programs 



receiving at least 40 

percent of their funding 
through the division, the 
following is the order of 
expenditure : 

(A) special grants from 
non-divisional sources 

that are for reimbursement 



720 



NORTH CAROLINA REGISTER 



of the same expenditures 
as those for which 
divisional categorical 
funds are appropriated 
(examples are grants from 
R.J. Reynolds^ Division of 
Youth Services 
Community-Based 
Alternative Funds); 

(B) block grant funds from 
the division; and 

(C) state categorical 
funds from the division. 

Revenue from non-divisional 
sources and block grant 
funds shall be deducted from 
total cost center 
expenditures for the purpose 
of determining the net cost 
upon which the state 
categorical share is based. 
Client-earned income, such 
as payments received from 
patients or third parties 
(insurance. Medicare, 
Medicaid), which is received 
but not expended shall be 
retained by the area 
program, or the contract 
program gioup hom e , alcoltol 
program mr drug progra m and 
be used to further the 
objectives of the 
legislation establishing the 
state categorical funding. 
When client-earned income 
results in an area program's 
or contract program's fund 
balance being in excess of 
15 percent of its annual 
operating budget, the amount 
in excess of 15 percent 
shall be handled in 
accordance . with the 
division's rule on fund 
balances, Rule .1125 of this 
Subchapter . Wlitfii a group 
home ' s fund balanc e -rs -in 
e .tc e ss of -1-5 p e rc e nt trf -rtrs 
annual o p e ra t ing budg e t , th* 
amoun t in e xc e ss of -1-5 
pe rc e n t shall irs handl e d -in 
accordain- e with Rules .110^ 
- HfNBiNS GReyP HSMES FOR 
EMOTIONALLY DIGTRUDCD 
CHILDREN; .1115 - EUNDING 
G ROUP HOMEG FOR MENTALLY 
RETARDED ADULTS ; . 112 - 
FU)fDIN € GROUP HOMES FOR 
MENTALLY RETARDED CHILDREN r 
or .1127 - GROUP HOflES FOR 
MR DE1IAVI0R.\LLY DISORDERED 
PERSONS of -Htts Subchapt e r . 
Wh e n an alcohol p rogra m or 
drug p ro g ram r e ceiving a+ 
leas t 4^ perc e n t of i-bs 
fundin g tliruuyli -tht? division 
has a fund balance -in exc es s 
o-f -1-5 pii i ixaiil rrf -rbs annual 
op e rating budge t , ex cluding 
rei;ti ic t ed donati o ns , t h e 
division ' s par t i»-ipat ion 
shall ire r e dut^ c d by t+re 



amount -in e xc e ss vf +5 
pe r ce nt . 
(2) For other contracted 

programs not receiving at 
least 40 percent of their 
funding through the division 
, state categorical fund 
expenditures shall be based 
upon net cost determined by 
reducing total project cost 
by program-generated income 
and/or special grants from 
non-divisional sources and 
block grant funds that are 
received by the contractor 
as reimbursement of the same 
expenditures as those for 
which categorical funds are 
appropriated . 

Program-generated income is 
payment received from 
patients or third parties 
for services provided and 
fees received for personal 
services performed in 
connection with the 
categorical grant . 

SECTION .1100 - STATE FEDERAL 
FUNDS ADMINISTERED 

.1107 COMMUNITY SUBSTANCE 
ABUSE FUNDS 

(b) Co m munity a ub stanc e abus e 
funds may b« utiliz e d -for 
r ep airs and maint e nanc e of 
facili t i e s which r e pr e s e n t 
normal upkeep and do rrorb 
ma te rially ini:.r e as e t h e valu e 
trf ttre facili t y or e x te nd -irbs 
ui,ef ul life . Programs operated 
by an area program or contract 
programs of the area program 
are eligible for funding of the 
following expenditures; 

( 1 ) staffing; 
( 2 ) travel ; 
( 3 ) suppl ies ; 
(4) administrative and 
program equipment; 

( 5 ) rent or lease of a 

residential facility; 

(6) other necessary program 
needs as approved by the 
division; and 

(7) repairs and maintenance 

of f acil it ies which 

represent normal upkeep and 
d o not materially increase 
the value of the facility or 
extend its useful life. 

(c) Community Substance Abuse 
Funds may be used for the 
purchase, construction and/or 

alteration, improvement or 

repair of a residential facility 
by the area program or a 
nonprofit board with division 

approval . The program shall 

meet the follov'>ing requirements; 

(1) The Residential Facility 
Mortgage Payment Program. 
The division may participate 
in the mortgage payment 



NORTH CAROLINA REGISTER 



721 



program in part or total 

cont iqent upon the 

availability of state funds. 
(2) The Residential Facility 
Purchase/Construction 
Program . 

(A) The division may 
participate in the down 
payment and/or lump sum 
purchase/construct ion of a 
residential facility in 
whole or part contingent 
upon the availability of 
state funds . 

(B) The area program or 
nonprofit board shall 



two 



property 



appraisals for review and 
approval by the division 
prior to purclicsc- . 
(C) If a new construction 
grant is requested, the 
area program shall submit 

two construct ion bid 

contracts from two 

building contractors to 
the appropriate regional 
office for review and 

approval prior to 

construction bid letting. 
(3) A request for initial 
renovation of a newly 
acquired facility of five 
thousand dollars ($5000) or 
less shall be submitted to 
the appropriate regional 
office of the division for 

approval . Initial minor 

repairs to facilities of 
less than one thousand 



dollars 



($1000) 



shall be 



approved 



hy_ 



the 



area 



program . 
(4) A request for alteration 

or improvement of an 

existing facility in excess 
of five thousand dollars 
($5000) shall be forwarded 
to the division director's 



office 



through 



the 



appropriate regional office 



of 



the 



division 



for 



approval . 

(5) Each request as outlined 
in (c) (2) and (4) of this 
Rule shall be accompanied by 
a narrative that explains 
the need for the purchase, 

construction , alteration, 

improvement or repair of the 
facility and a copy of the 

schcnat ic drawings and 

specifications. If approved 
by the Division of Mental 
Health. Mental Retardation 

a nd Substance Abuse 

Services, these drawings and 

specifications shall be 

forwarded to the Division of 
Facility Services for review 
and approval . 

(6) If the residential 
facility is operated by a 
nonprofit board, the area 



program shall sign a legally 
binding contract with the 
private nonprofit agency for 
either the mortgage payments 



to 



be 



made 



the 



pur chase/ con struct ion 
program as indicated in (c) 
(1) and (2) of this Rule. A 
copy of the appropriate 
contract shall be obtained 
from the Fiscal Services 
Branch of the central office 
of the division. 
(7) If a facility owned by 
an area program or its 
private nonprofit contract 



agency 



altered , 



improved 



purchased , 



rehabilitated using division 
funds and later ceases to be 
used in the delivery of 
services to clients by the 
area program or its private 
nonprofit contract agency, 
the facility shall be sold 
at the current fair market 
value as determined by two 



independent 



appraisals 



acceptable to the division. 



The 



division 



shall 



be 



reimbursed a pro rata share 
of the proceeds of the sale 
based on the percent of 
contribution made by the 
division in the purchase, 
alteration, improv^ement or 
rehabilitation. If an area 
program or it's contract 
program wishes to retain a 
facility that was purchased, 

altered, improved or 

rehabilitated using funds 
for Community Substance 



Abuse 



Funds ■ 



the 



program or its contract 
program shall pay to the 
division a pro rata share of 



the 



current fair 



marl<et 



value of the facility as 



determined 



independent 



by_ 



tvio 



appraisals 



acceptable to the division 
based on contribution made 
by the division in the 



purchase 



improvement 



alteration , 



rehab ilitat ion 



of 



the 



facility . 



may 



be 



This provision 



waived 



division 



director 



h2L. 



the 



upon 



written request of the 
program . The area program 
shall maintain records on a 
continuous bases which 



ref '' ect 



the 



amount 



of 



contribution for purchase, 
alteration, improvement or 

rehabilitation b^ the 

division , area program 

and/or other funding entity. 

(d) Fund Balance. The 

division may allow area programs 

or contract programs to maintain 

a fund balance of no more than 



722 



NORTH CAROLINA REGISTER 



15 percent of the current annual 

budget in accordance with Rule 

■1125 of this Section. 

-fc^ (e ) For an area program to 

apply for community substance 

abuse funds, an annual plan and 

budget for such funds shall be 

included in the appropriate area 

program's total annual plan and 

budget package when it is 

submitted to the appropriate 

regional office of the division. 

( J ) ( f ) Based on the annual 

plan and budget submitted and 

availability of these funds, 

allocations shall be made 

yearly among area programs by 

the director of the division or 

his designee. 

. 1 1 25 FUND BALANCE : AREA 
PROGRAMS/CONTRACT 
PROGRAMS 

(a) In order for the division 
to have input into the actions 
regarding fund balances in area 
programs and contract programs 
a s provided for in Rule .1014 of 
this Subchapter, the following 
shall take place after the 
certified public accountant's 
audit report is rendered and the 
tentative settlement report 
prepared : 

( 1 ) The fund balance set 

forth within the annual 
audit of area programs and 
contract programs shall be 
verified by the division. 

(b) The reduction of financial 
support by the division to area 
programs and contract programs 
may be decreased and/or delayed 
if there are extenuating 
circumstances which, in the 
opinion of the division 
director, warrant relaxation of 
this policy. Any action taken 
in regard to (b) of this Rule 
shall be documented in writing. 

.1138 COMMUNITY SUPPORT 

SERVICES FOR CHRONICALLY 
MENTALLY ILL 

(a) The division shall 
maintain a program of grants to 
area programs for the purpose of 
providing community based 
support day progi ai i i& services 
for chronically mentally ill 
adults and elderly individuals. 
Th e djry If the programs funded 
with these grants are day/night 
programs thev shall meet the 
standards for Community Support 
Programs for Adults and Elderly 
Individuals Who Are Chronically 
Mentally 111 as codified in 10 
NCAC 18? Section .0500. These 
funds may not be used for 
support of inpatient services. 

(b) funds -ftrr community suppor t 
day program s e rvic e s frrr t h e 

m e n t ally -rti sliall 



b« adminis tere d "fctj t h o s e Not 

less than three hundred 

seventv-four thousand dollars 

($374,000) annually plus 

applicable inflation and salary 
increase funds appropriated by 
the Legislature shall be spent 
to operate community support 
day/night services programs in 
area programs which have a 
program operating (Mountainhouse 
Blue Ridge Area Program; 
Sunshine House - New River Area 
Program; Piedmont Pioneer House 
Gaston/Lincoln Area Program) 
in an amount not to exceed 
twenty thousand dollars 

($20,000) plus applicable 

inflation and salary increase 
funds per program per year. 
Funds may also be administered 
to new programs, but support for 
each new program shall not 
exceed fifty thousand dollars 
($50,000) per year plus 
applicable inflation and salary 
increase funds. 

-(-c^ Programs operated by an 

area 
program or programs of the area 
program are eligible for funding 
of the following expenditures: 

( 1 ) staffing; 

(2) travel; 

(3) supplies; 

(4) administrative and 
program equipment; 

(5) repairs and maintenance 
of facilities which 
represent normal upkeep and 
do not materially increase 
the value of the facility or 
extend its useful life 
(these funds shall not be 
used for purchase of real 
property ) ; and 

(6) other program needs as 
approved by the division. 

■frdt^ Th« ex p e nditur e -for r e n t 
vr l e ase of veal pi uytsi ly shall 
no-t btr cuvered with funds for 
commuiii t y suppor t services for 
•Hre chroiiically men t all y ill . 

-fc^ Funds shall btr grant e d to 
■the yioiji ' ains on t4Te basis of 
applica t ions which in c lude a 
d em onstration of l o cal 
inv e s t m e n t . n ee d , and r e adin e ss 
to impi ov e s e i v ices . Exampl e s 
of luoal ijivestiii e ut are 
ci t izens ' in te i est . volun tee r 
e ffor t s antl financial suppo rt . 

(c) Funds for community-based 

support services for the 

chronically mentally ill not 
referenced in (b) of this Rule 
may be used to provide an array 
of services for the chronically 
mentally ill including, but not 
limited to, case management, 
emergency services, crisis 



stabilization. 



residential 



services and community support 
day programs as described in (b) 



NORTH CAROLINA REGISTER 



723 



of 



this 



Rule. 



receiving 



funds 



Programs 
for 



community-based support services 

shall meet the appl icable 

standards for the particular 
service as codified in 10 NCAC 
181 through 18Q. These funds 
shall be administered to area 
programs on a per capita basis 



ut il izing 



the 



most 



current 



population data available from 
Office of State Budget and 



Management . 



These funds shall 



be expended as follovjs; 

( 1 ) Programs operated by an 
area program or contract 
programs of the area program 
are eligible for funding of 
the following expenditures: 



(A) 


staffing; 


(B) 


travel ; 


(C) 


supplies; 



(D) administrative and 
program eguipment; 

(E) other program needs as 
approved by the division; 
and 

(F) repairs and 
maintenance of facilities> 
other than residential 

f acil it ies which are 

governed by (c) (2) of 
this Rule, which renrosont 
normal upkeep and do not 
materinllv incroaro the 
value of the facility or 
extend its useful life. 
Except for residential 
facilities as provided for 
in (c) (2) of this Rule, 
these funds shall not be 
used for purchase of real 
property . 

(2) Funds for community-based 
support services for the 
chronically mentpljy i,"' 1 may 
be used for the purchase, 



construct ion 



and/or 



alteration, improvement or 



repair 



of 



residential 



facility by the area program 
or a non-profit board with 
division approval . The 



program 



shall meet 



the 



requirements 



of 



the 



following : 

(A) The Residential 

Facility Mortgage Payment 
Program. The division may 

participate in the 

mortgage payment progra m 
in part or in total 



dependent 



upon 



the 



availabil ity of state 

funds ■ 
(B) The Residential 

Facil ity 

Purchase/Construction 

Program . 

(i) The division may 
participate in the down 
payment and/or lunp sum 
purchase/construction of 
a residential facility 



whole 

contingent 



or 

upon 



part 
the 



availability of state 
funds . 
(ii) The area program 

or non-profit board 

shall secure two 

property appraisals for 
review and approval by 
the division prior to 
purchase . 
(iii) If a now 

construction grant is 

requested , the area 

program shall submit two 

construction bid 

contracts from two 

building contractors to 
the appropriate regional 
office for review and 
approval prior to 



construction 



bid 



letting . 
(C) A request for initial 
renovation of a newly 

acquired residential 

facility of five thousand 
dollars ($5000) or less 
shall be submitted to the 

appropriate regional 

office of the division for 

approval . Initial minor 

repairs to residential 
facilities of less than 



thousand 



dollars 



($1000) shall be approved 
by the area program . 

(D) A request for 
alteration or improvement 
of an existing residential 
facility in excess of five 
thousand dollars ($5000) 
shall be forwarded to the 
division director's office 
throtigh the appropriate 
regional office of the 
division for approval. 

(E) Each request as 
outlined in (c) (2) (B) 
and (D) of this Rule shall 

be accompanied by a 

narrative that explains 
the need for the purchase, 
construction, alteration, 
improvement or repair of 
the facility and a copy of 
the schematic dravjings and 



specifications , 



If 



approved by the Division 
of Mental Health, Mental 
Retardation and Substance 

Abuse Services , these 

drawings and 

specifications shall be 
f r rwarded to the Division 
of Facility Services for 
review and approval. 
(F) If the residential 

facility is operated by a 
non-profit board, the area 
program shall sign a 
legally binding contract 
with the private 



non-profit 



agency 



for 



724 



NORTH CAROLINA REGISTER 



either 



the 



mortgage 



payments to be made or the 
pur chase/ const ruction 
program as indicated in 
(c) (2) (A) and (B) of 
this Rule. A copy of the 
appropriate contract shall 
be obtained from the 
Fiscal Services Branch of 
the central office of the 
division . 
(G) If a residential 

facility owned by an area 
program or its private 
non-profit contract agency 
was purchased; altered, 
improved, or rehabilitated 
using division funds and 
later ceases to be used in 
the delivery of services 
to clients by the area 
program or its private 

non-profit contract 

agency, the facility shall 
be sold at the current 



fair market 



value 



determined 



independent 



_bx. 



two 



acceptable 



appraisals 



to 



the 



division . 



The division 



shall be reimbursed a pro 
rata share of the proceeds 
of the sale based on the 
percent of contribution 
mnde by the division in 
the purchase, alteration, 
improvement or 



rehabilitation. 



If 



area 



non-profit 



program 



or 



its 



contract 



program wishes to retain a 
f acil ity that was 



purchased , 



altered. 



improved or rehabilitated 
using funds for Community 

Support Services for 

Chronically Mentally 111, 
the area program or its 
contract program shall pay 
to the division a pro rata 
share of the current fair 
market value of the 
facility as determined by 
tv;o independent appraisals 
acceptable to the division 
based on contribution made 
by the division in the 



purchase , 



improvement 

rehab il it at ion 



alteration , 



the 



facility. This provision 
m ay he waived by tlie 



division 



director 



upon 



written request of the 
program . The area program 
shall maintain records on 
a continuous basis which 
reflect the amount of 
contribution for purchase , 

alternt ion , improvement , 

or rehabilitation by the 
division, area program 



and/or 



other 



entity . 



funding 



(d) Fund Balance. An 
allowance for a fund balance for 
area programs or contract 
programs is made in Rule .1125 
of this Section. 

(e) Application for an 
allocation of both types of 
community support funds shall be 
as follows : 

-(-f-)- ( 1 ) To apply for funds an 
annual plan and budget for 
such funds shall be included 
in the appropriate area 
program's total annual plan 
and budget package when it 
is submitted to the 
appropriate regional office 
of the division. 

■fg^ (2) Funds shall be 

allocated by the director of 
the division among the 
regional offices. 

■fh-)- (3) Based on the annual 
plan and budget submitted 
and availability of funds, 
allocation of funds for area 
programs within each region 
shall be made by the 
division director or his 
designee . 

.1142 ALLOCATION OF OUTPATIENT 

COMMITMENT FUNDS 
(c) The appropriate regional 
office of the division shall 
allocate funds to area programs 
based on an actual commitment 
basis, not to exceed the amount 
as approved by the legislature 
per year per case. Area 
programs shall complete the 
"Outpatient Involuntary 

Commitment Reimbursement" form 
each month to receive 
reimbursement. Reimbursement 
shall be made as follows: 

( 5 ) Reimbursement requests 

shall be submitted to the 
regional office for payment 
within 90 days after the month 
in v)hich service is rendered. 

Reimbursement requests 

submitted after 90 days may be 
paid based upon availability 

of ftinds and division 

approval . 

.1146 RESIDENTIAL FACILITIES 

FOR CHRONICALLY MENTALLY 
ILL ADULTS 
Ca) Pursuant to G.S. 122C-150, 
the division shall administer a 
program of grants to area 
programs to be called funds for 
residential facilities for 
chronically mentally ill adults. 

(b) Such grants shall be used 
to support residential 
facilities for chronically 
mentally ill adults. 

(c) Funds for residential 
facilities for chronically 
mentally ill adults shall be 
administered to area programs as 



NORTH CAROLINA REGISTER 



725 



direct grants and do not require 
local matching. 

(d) Programs operated by an 
area program or contract 
programs of the area program may 
spend funds for residential 
facilities for chronically 
mentally ill adults for the 
following = 

( 1 ) staffing; 

(2) to rent or lease 
residential facilities; 

(3) furniture or specialized 
equipment for residents; 

(4) transportation of 
residents ; 

(5) other necessary 
operating expenses as 
approved by the division; 

(6) repairs and maintenance 
of facilities which 
represent normal upkeep and 
do not materially increase 
the value of the facility or 
extend its useful life; 

(e) Funds for residential 
facilities for chronically 
mentally ill adults may be used 
for the purchase, construction 
and/or alteration, improvement 
or repair of a residential 
facility by the area program or 
a non-profit contract program 
with division approval. The 
program shall meet the 
requirements of the following: 

(1) The Residential Facility 
Mortgage Payment Program. 
The division may participate 
in the mortgage payment 
program in part or in total 
dependent upon the 
availability of state funds. 

(2) The Residential Facility 
Pur chase/ Con struct ion 
Program . 

(A) The division may 
participate in the down 
payment and/or lump sum 
purchase/construction of a 
residential facility in 
whole or part contingent 
upon the availability of 
state funds . 

(B) The area program or 
non-profit board shall 
secure two property 
appraisals for review and 
approval by the division 
prior to purchase. 

(C) If a new construction 
grant is requested, the 
area program shall submit 
tvjo construction bid 
contracts from two 
building contractors to 
the appropriate regional 
office for review and 
approval prior to 
construction bid letting. 

(3) A request for initial 
renovation of a newly 
acquired residential 
facility of five thousand 



dollars ($5000) or less 
shall be submitted to the 
appropriate regional office 
of the division for 
approval. Initial minor 
repairs to facilities of 
less than one thousand 
dollars ($1000) shall be 
approved by the area 
program . 

(4) A request for alteration 
or improvement of an 
e.xisting residential 
facility in excess of five 
thousand dollars ($5000) 
shall be forwarded to the 
division director's office 
through the appropriate 
regional office of the 
division for approval. 

(5) Each request as outlined 
in (e) (2) and (4) of this 
Rule shall be accompanied by 
a narrative that explains 
the need for the purchase, 
construction, alteration, 
improvement or repair of the 
facility and a copy of the 
schematic drawings and 
specifications. If approved 
by the Division of Mental 
Health, Mental Retardation 
and Substance Abuse 
Services, these drawings and 
specifications shall be 
forwarded to the Division of 
Facility Services for review 
and approval . 

(6) If the residential 
facility is operated by a 
non-profit board, the area 
program shall sign a legally 
binding contract with the 
private non-profit agency 
for either the mortgage 
payments to be made or the 
pur chase/ const ruction 
program as indicated in (e) 
(1 ) and (2) of this Rule. A 
copy of the appropriate 
contract shall be obtained 
from the Fiscal Services 
Branch of the central office 
of the division. 

(7) If a residential facility 
owned by an area program or 
its private non-profit 
contract agency was 
purchased, altered, 
improved, or rehabilitated 
using division funds and 
later ceases to be used in 
the delivery of services to 
clients by the area program 
or its private non-profit 
contract agency, the 
facility shall be sold at 
the current fair market 
value as determined by two 
independent appraisals 
acceptable to the division. 
The division shall be 
reimbursed a pro rata share 
of the proceeds of the sale 



726 



NORTH CAROLINA REGISTER 



based on the percent of 
contribution made by the 
division in the purchase, 
alteration, improvement or 
rehabilitation. If an area 
program or its non-profit 
contract program wishes to 
retain a facility that was 
purchased, altered, improved 
or rehabilitated using funds 
for Residential Facilities 
for chronically mentally ill 
adults the area program or 
its contract program shall 
pay to the division a pro 
rata share of the current 
fair market value of the 
facility as determined by 
two independent appraisals 
acceptable to the division 
based on contribution made 
by the division in the 
purchase, alteration, 
improvement or 

rehabilitation of the 
facility. This provision 
may be waived by the 
division director upon 
written request of the 
program. The area program 
shall maintain records on a 
continuous basis which 
reflect the amount of 
contribution for purchase, 
alteration, improvement, or 
rehabilitation by the 
division, area program 
and/or other funding entity. 

(f) Fund balance. The 
division may allow area programs 
or contract programs to maintain 
a fund balance of no more than 
15 percent of the current annual 
budget in accordance with Rule 
.1125 of this Section. 

(g) To apply for funds for 
residential facilities for 
chronically mentally ill adults, 
an annual plan and budget for 
such funds shall be included in 
the appropriate area program's 
total annual plan and budget 
package when it is submitted to 
the appropriate regional office 
of the division. 

(h) Funds for residential 
facilities for chronically 
mentally ill adults shall be 
allocated among the regions of 
the division by the division 
director . 

(i) Based on the approved 
annual plan and budget request 
submitted and availability of 
funds, allocation of funds for 
group homes for emotionally 
disturbed adults to area 
programs within each region 
shall be made by the division 
director or his designee. 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the N.C. Commission for the 



Blind, Division of Services for 
the Blind intends to amend 
regulations cited as 10 NCAC 19C 
.0505; 10 NCAC 19H .0102; .0105. 

The proposed effective date of 
this action is June 1, 1987. 

Statutory Authority: G.S. 
111-8; 111-13; 111-27; 143B-157. 

The public hearing will be 
conducted at 10:00 a.m. on March 
7, 1987 at Conference Room, N.C. 
Division of Services for the 
Blind, 309 Ashe Avenue, Fisher 
Building, Raleigh, North 
Carolina 27606. 

Comment Procedures: Interested 
persons may present his 
statements either orally, (for 
no more than 3 minutes), at the 
public hearing or in writing at 
or prior to the public hearing 
by mail addressed to Mr. Herman 
0. Gruber, Director, Division of 
Services for the Blind, 309 Ashe 
Avenue, Raleigh, N.C. 27606. 
If any person desires to speak 
at the public hearing the 
Director of the Division of 
Services for the Blind should be 
notified three days prior to the 
public hearing. 

SUBCHAPTER 19C - BUSINESS 
ENTERPRISES PROGRAM 

SECTION .0500 - ELECTION: 
ORGANIZATION AND FUNCTIONS OF 
THE COMMITTEE ON THE STAND 
PROGRAM 

.0505 COMMITTEE SIZE 
The number of representatives 
from each region is based on the 
number of uperatur s facilities 
in a region, as follows: 
( 1 ) 1-10 upeia t ors facilities 

--one representative; 
(2) an additional 

representative for each 
additional 10 operators 
facilities , or any part 
thereof. 

SUBCHAPTER 1 9H - MEDICAL/EYE 
CARE PROGRAM 



SECTION .0100 



CERTIFICATION 



.0102 ELIGIBILITY CRITERIA 
(a) A North Carolina resident 

is eligible to receive services 

if: 

(1) The services are not 
covered by the North 
Carolina Medical Assistance 
(medicaid program); or 

(2) The resident is a 
medicaid recipient on a 
spend-down who qualifies 



NORTH CAROLINA REGISTER 



727 



under the appropriate income 
criterion; or 
(3) The services cannot be 
reimbursed by any other 
state or federal program 
providing eye care. 

(b) If the resident is a 
preschool child or school age 
child, the family's annual net 
income cannot exceed the amounts 
as set out in S.L. 1985, Chapter 
479 s. 87. The economic needs 
schedule utilized by the agency 
is on file at the Division of 
Services for the Blind, 309 Ashe 
Avenue, Raleigh, N.C. 27606, 
and copies can be obtained at 
any of the Division of Services 
for the Blind Field offices. 
For purposes trf e ligibility 
d e t e vminat ion . 

-(-H- Incom e -rs con&id e L 'e d jrii 
monetary rec e ipts . 

( 2 ) Ktrt inc o m e -is t+r« am o un t 
r em ainin g a f t e r f ede ral arrd 
stat e wi t liliolding t a.Tcs , 
social s e cur i t y t a.r e s arrd 
cos t of m e dical and hospi t al 
insurance b o rn e by t+re 
family liav e be e n dii;duc te d . 

(c) If the resident is an 
adult, the family's annual net 
income can not exceed the amount 
set out in S.L. 1985, Chapter 
479 s. 87. The economic needs 
schedule utilized by this agency 
is on file at the Division of 
Services for the Blind, 309 Ashe 
Avenue, Raleigh, N.C. 27606, 
and copies can be obtained at 
any of the Division of Services 
for the Blind field offices. 

(d) F o r purpos e s erf 
e ligibili t y determina t ion ■ 

( 1 ) Income -rs considered all 

m o ne t ary rec e ip t s . 
(2 ) Ne t incom e ts t h e amoun t 

r e maining afte r deduc t ing ■ 

-fA4- w o rk r e la te d e xp e nses 
ffs cos t o-f t ranspor t ation , 
luiicl ' ics eaten atr work, 
child car e , arrd 
liospi t aliza t ion and 
medical insuranc e ; 

<D ) compulsory deduc t ions 
as fed e ral and sta te 
wi t hholding t axes , s ocial 
s e curi t y taxes , artd ci t y 
county propel ty tax e s , and 

(G ) unusal expens e s 

nec e ssary to -Hre family as 
cert ain e duca t ional 
e .rpenscs , support o^ 
dependen ts ou t side of t+re 
h ome , ai-i medical bills 
over -ttm dollars (010 .00) 
p er mon t lT, mrd all den t al 
bills iuLUi red wltl ' iin s-ttc 
mon t hs . 

( e ) The income tables for 
child and adult categories are 
set by the General Assembly and 
can be found in the Medical/Eye 
Care Program Manual located in 



the Division of Services for the 
Blind Office at 4+e Nortli Doylan 
Av e nu e , 309 Ashe Avenue, 
Raleigh, all services for the 
blind regional offices, and all 
county department of health and 
social services. Services for 
the Blind office hours at are 
7:30 a.m. to 4 ; 30 p.m. Monday 
through Friday. 

.0105 RETROACTIVE 

CERTIFICATION 
Division may accept 
ility for emergency 
tient and outpatient surgerv 
hospital services and plus 
r services or treatment 
ided prior to certification 



The 

liab 

inpa 

and 

othe 

prov 

if: 

(1 ) 

m 

a 

(2) 

t 

P 

(3) 

c 

Surg 



not 



Services were received no 
ore than 90 days before 
pplicat ion; 

the person was eligible at 
he time the services were 
erformed, and 

the services were those 
ovcred by this program. 
erv and hospitalization 
of an emergency nature 



requires prior approval. 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the N. C. Division of 
Services for the Blind intends 
to amend regulations cited as 10 
NCAC 19C .0702. 

The proposed effective date of 
this action is June 1, 1987. 



Statutory Authority: 
111-12.5; 111-27. 



G.S. 



The public hearing will be' 
conducted at 10:00 a.m. on March 
7, 1987 at Conference Room, N.C. 
Division of Services for the 
Blind, 309 Ashe Avenue, Fisher 
Building, Raleigh, North 
Carolina 27606. 

Comment Procedures: Interested 
persons may present his 
statements either orally, (for 
no more than 3 minutes), at the 
public hearing or in writing at 
or prior to the public hearing 
by mail addressed to Mr. Herman 
0. Gruber, Director, Division of 
Services for the Blind, 309 Ashe 
Avenue, Raleigh, N. C. 27606. 
If any person desires to speak 
at the public hearing the 
Director of the Division of 
Services for the Blind should be 
notified three days prior to the 
public hearing. 

SUBCHAPTER 19C - BUSINESS 
ENTERPRISES PROGRAM 



728 



NORTH CAROLINA REGISTER 



SECTION .0700 - EARNINGS: 
FUNDS: AND PROCEEDS 

.0702 SET-ASIDE 

(b) The division will set 



aside no more than a total of 
twenty percent of the funds from 
the net proceeds of each stand 
operation to be used for the 
following purposes: 



Estimated 
Percentage 

(1) maintenance and replacement of equipment 3.9lJi 

(2) purchase of new equipment 4.35/: 

(3) management services 7.39/C 

(4) assuring a fair minimum return to operators 4.35/C 

(5) the establishment and maintenance of retirement or pension 
funds, health insurance contributions, and provision for paid 
sick leave and vacation time, if it is so determined by a 
majority vote of blind operators licensed by the division, 
after the division provides to each such operator information 
on all matters relevant to such proposed purposes. 

rule or rules to which the 
comments are addressed. 



The percentage, to be 
determined in advance, will vary 
from facility to facility 
depending upon the nature and 
scope of the accounting services 
rendered by the Division of 
Services for the Blind to the 
individual facility. 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the Commission for Mental 
Health, Mental Retardation and 
Substance Abuse Service intends 
to amend regulations cited as 10 
NCAC 45G .0301 and 10 NCAC 45H 
.0202. 



The proposed effective date 
this action is May 1, 1987. 



of 



Statutory Authority: 
90-88; 90-89; 90-100; 
143B-147. 

The public hearing 
conducted at 10:45 
February 18, 1987 
Governor's Room, 



G.S. 
90-106; 



will be 
a.m. on 
at The 
Sheraton 



Crabtree, 4501 
Raleigh, N.C. . 



Creedmore Road, 



Comment Procedures: Any 
interested person may present 
his/her views and comments by 
oral presentation at the hearing 
or by submitting a written 
statement . Persons wishing to 
make oral presentations should 
contact: Jackie Stalnaker, APA 
Coordinator, Division of Mental 
Health, Mental Retardation and 
Substance Abuse Services. 325 N. 
Salisbury Street, Raleigh, North 
Carolina 27611, (919) 733-7971 
by February 17, 1987. The 
hearing record will remain open 
for written comments for 30 days 
from January 19, 1987 through 
February 17, 1987. Written 
comments must be sent to tlie APA 
Coordinator at the address 
specified above by February 17, 
1987 and must state the proposed 



CHAPTER 45 - NORTH CAROLINA 
DRUG COMMISSION 

SUBCHAPTER 45G - MANUFACTURERS: 

DISTRIBUTORS: DISPENSERS AND 

RESEARCHERS OF CONTROLLED 

SUBSTANCES 



SECTION 
.0301 



,0300 - PRESCRIPTIONS 



PRESCRIPTION 

REQUIREMENTS GENERALLY 
Compliance with the 
prescription requirements of the 
federal law, including the 
requirements presented in Part 
1306 of Title 21 of the Code of 
Federal Regulations, shall be 
deemed compliance under General 
Statute Chapter 90, Article 5. 
exc e ^j t the t ransf e r o^ original 
prescription liif oimation for a 
con t rolled subs t an ce lis te d -in 
sch e dul e s Mi-r iVr or- V fxrr ttre 
purpos e trf r e fill disp e nsin g -rs 
nrrt p e rmisa>ible be t w ee n 
pharmaci e s at- any tim e . 

SUBCHAPTER 45H - DRUG TREATMENT 
FACILITIES 

SECTION .0200 - SCHEDULES OF 
CONTROLLED SUBSTANCES 

.0202 SCHEDULE I 
(b) Opiates. Unless 
specifically excepted or unless 
listed in another schedule, any 
of the following opiates, 
including its isomers, esters, 
ethers salts and salts or of 
isomers, esters and ethers 
wherever the existence of such 
isomers, esters, ethers and 
salts is possible within the 
specific chemical designation: 
(31) 3-methylfentanyl (N- 
[3-methvl-l -( 2 -phenyl ethvl ) 
-4 -piper idyl ] -N-phenvlpro- 
panamide ) . 

9813 



NORTH CAROLINA REGISTER 



729 



TITLE 1 1 - DEPARTMENT OF 

INSURANCE 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the Department of Insurance 
intends to amend regulations 
cited as 11 NCAC 8 .0203; repeal 
11 NCAC 8 .0204-. 0210. 

The proposed effective date of 
this action is August 1, 1987. 

Purpose of proposed rule : The 
above APA Rules that are 
proposed for repeal and 
amendment attempt to incorporate 
by reference the N.C. State 
Building Code. Since 

incorporation by reference of an 
agency's own rules into its 
administrative code is not 
allowed under the provisions of 
NCGS 150B-14, and further since 
NCGS 150B-2(8)h specifically 
states that the definition of 
rule does not include 
scientific, architectural, and 
engineering standards, forms, 
and procedures. and further 
since the N.C. State Building 
Code is comprised of scientific, 
architectural, and engineering 
standards, the N.C. State 
Building Code Council proposes 
to amend and repeal the above 
referenced rules in order to 
comply v;ith a formal request by 
the Administrative Rules Review 
Commission that the 
incorporations by reference be 
deleted . 

The amendment and repeals are 
merely technical corrections and 
in no way affect the force or 
validity of the N.C. State 
Building Code. 

The N.C. State Building Code 
Council will take final action 
on the proposed changes on June 
9, 1987 at 10:00 a.m. at their 
meeting which will be held in 
room 700 of the Wake County 
Courthouse in Raleigh. 



Statutory 
143-138. 



Authority: 



G.S. 



The public hearing will be 
conducted at 10:00 a.m. on March 
10, 1987 at Auditorium, 
Environmental Health Building, 
1200 Blythe Blvd., Charlotte, 
North Carolina. 

Comment Procedures: Direct all 
written comments to Lee Hauscr , 
Secretary. N.C. State Building 
Code Council, Post Office Bo.x 
26387, Raleigh, N.C, 27611. 
Mr. Hauser may be reached by 
telephone at C919) 733-3901. 



CHAPTER 8 - ENGINEERING AND 
BUILDING CODES 

SECTION .0200 - NORTH CAROLINA 
STATE BUILDING CODE 

.0203 BUILDING CODE 

PUBLICATIONS: GENERAL 
INFORMATION 

(a) All volumes of the North 
Carolina State Building Code are 
published under the direction of 
the North Carolina Department of 
Insurance. All volumes of the 
code are updated annually and 
supplements containing 
amendments and other pertinent 
information are also published 
and filed with the State 
Attorney General . 

(b) Copies of the various 
volumes of the building code may 
be obtained from: Department of 
Insurance, ATTENTION: 
Engineering and Building Codes 
Division, P. 0. Box 26387, 
Raleigh, North Carolina 27611. 
Information regarding cost of 
the publications may be obtained 
at the same address. Costs are 
based upon the cost to the 
department of publication, 
distribution and annual 
revisions. Th e cod e -is 
in c o rp ui. a te d h e i e lji by 
refer e nce . 

.0204 BUILDING CODE: VOLUME 

I : GENERAL CONSTRUCTION 
(REPEALED) 

.0205 BUILDING CODE: VOLUME 

IB: UNIFORM RESIDENTIAL 
CODE (REPEALED) 

.0206 BUILDING CODE: VOLUME 

II: PLUMBING (REPEALED) 

.0207 HEATING: AIR 
CONDITIONING: 
REFRIGERATION AND 
VENTILATION (REPEALED) 

.0208 BUILDING CODE: VOLUME 
IV: ELECTRICAL 
(REPEALED) 

.0209 REGULATIONS FOR MOBILE 
HOMES (REPEALED) 

.0210 BUILDING CODE: 

HANDICAPPED SECTION 
(REPEALED) 

TITLE 12 - DEPARTMENT OF JUSTICE 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the N.C. Alarm Systems 
Licensing Board intends to amend 
regulations cited as 12 NCAC 11 
.0103; .0104; .0107; .0201; 



730 



NORTH CAROLINA REGISTER 



.0202; and .0204; 
.0306. 



.0206; .0301; 



The proposed effective date of 
this action is May 1, 1987. 



Statutory Authority: 
74D-2, 3, 5, 6, 7, 8, 10, 



G.S. 



The public hearing will be 
conducted at 1:00 p.m. on March 
10, 1987 at McKimmon Center, 
Gorman Street & Western Blvd., 
Raleigh, NC, (room will be 
posted at the site). 

Comment Procedures : Any 
interested person may present 
his or her views and comments in 
writing 10 days prior to the 
hearing. Please send all 
information to Mr. Jim Kirk, 
N.C. Alarms Systems Licensing 
Board, P. 0. Box 29500, Raleigh, 
N.C. Any person may request 
information or copies of the 
proposed rules by calling (919) 
779-1611 . 

CHAPTER 11 - N . C . ALARM SYSTEMS 
LICENSING BOARD 

SECTION .0100 - ORGANIZATION AND 
GENERAL PROVISIONS 

.0103 DEFINITIONS 

In addition tc tha definitions 
under G.S. Chapter 74D, the 
following definitions shall 
apply throughout this Chapter: 

(1) "Applicant" means any 
person, firm, or corporation 
applying to the board for a 
license or registration. 

(2) "Board" means the Alarm 
Systems Licensing Board 
established by G.S. Chapter 
74D. 

(3) "Branch Manager or 
Operator" means the licensee 
endowed with the 
responsibility and liability 
for a branch office. 

(4) "Branch Office" means a 
separate but dependent part 
of a central organization. 
The establishment of a 
telephone number or mailing 
address in the company name 
constitutes prima facie 
evidence of a branch office. 

(5) "Chairman" means the 
Chairman of the Alarm Systems 
Licensing Board. 

■(-6-> "In^tallh" ii[ e ai ' i& plai-liig 
art alai ii i d e vic e -in a 
r e sid e n t ial or commercial 
l oc a t ion arrd shall includ e 
demuiis t ra t ing t h e u t iliza t ion 
of vrt alarm sys t e m device f or 
a specific lo c a t ion arrd 
fund lull wi t hin t+re protected 
pr e mises and wi t l ' i sucli 
kiiowl e dye trf t h e alarm system 



o p e ra t ion) d e liv e r iiig tlial 
d e vice tr) th e own e r or* 
op e ra t or o^ ttre , protect e d 

pre mis e s . 

(6) "Emplovee" includes anv 
individual employed by an 
employer . 

■(rH- "Licens ee " m e ans airy 

p e rson licens e d pursuant tt> 
G-rS-r Chapter t'4»t 

(7) "Installs" means placing 



alarm 



device 



in 



residential 



or 



commercial 



location and shall include 
demonstrating the utilization 
of an alarm system device for 
a specific location and 
function within the protected 
premises and, with such 
knowledge of the alarm system 
operation, delivering that 



device 



to 



the 



operator of the protected 
premises ■ 

■i-8-^ "Resp o nds" m e ans 

r e c e iving a i i iunitoied alarm 
signal t ha t indica te s the 
e . r is te nc e tyf zm unauth or iz e d 
intrusion or t akin g f i oii i the 
pr e mises o-f a cu&tom e r and 
b e in g l e quii e d by contract -to 
take action upon r e c e i pt vf 
t ha t alalia signal . 

(8) "Knowledge of Specific 
Application" means obtaining 
specific information about 
the premises which is 



protected or is 



to 



be 



protected, 



such knowledge 



gained during an on-site 
visit . 



-^9^ 



'Servic e s" means 
inspecting, t e sting, 

repairin g or* replacing an 
ala rm sys te m devic e within 
protec t ed premises . 

(9) "Licensee" means anv 
person licensed pursuant to 
G.S. Chapter 740. 

(10) "Monitors" means 
receiving 

a continuous signal from 
protected premises or 
contracting with a person, 
firm or corporation to 
provide accessible equipment 
and personnel to receive a 
signal from an alarm device 
in a residential or 
commercial location and take 
certain action in response. 

(11) "Qualifying Agent" means 
any person who meets the 
requirements of G.S. 
74D-2(c), provided that no 
licensee may act as 
qualifying agent for more 
than one alarm systems 
business without prior 
authorization of the board. 

(12) "Responds" means 
receiving a monitored alarm 
signal that indicates the 
existence of an unauthorized 



NORTH CAROLINA REGISTER 



731 



Intrusion or taking from the 
premises of a customer, and 
being required by contract to 
take action upon receipt of 
that alarm signal. 
(13) "Services" means 

inspecting, testing, 

repairing or replacing an 
alarm system device within 
protected premises. 

.0104 DISCIPLINARY ACTIONS 

(c) A notice of any 
disciplinary action shall be 
sent to the employer of the 
holder, -rf -thw hold e r is 
e mploy e d by a lit:ei ' i«.e e the 
qualifying agent and the holder. 

.0107 RULE-MAKING AND 

ADMINISTRATIVE HEARING 
PROCEDURES 

(a) The Model Administrative 
Procedures for Rule-Making and 
Hearings, codified as Title 22, 
Subchapter 2B and 2C of the 
North Carolina Administrative 
Code effective September 29, 
1980; ar e her e by adop te d by 
r e f e r e nce t-o apply t-o ac t ions of 
t li e Alar m Sys tem s Licensing 
Board and as amended February 1 , 
1 986 , are hereby adopted by 
reference to apply to actions of 
the Alarm Systems Licensing 
Board . 

SECTION .0200 - PROVISIONS FOR 
LICENSEES 

.0201 APPLICATION FOR LICENSE 

(a) 
(2) two recent head and 

shoulders color photographs 
of the applicant of 
acceptable quality for 
identification one inch by 
one inch in size; 

.0202 EXPERIENCE REQUIREMENTS 

FOR LICENSE 
(a) 

(1) Establish to the Board's 
satisfaction on e two years 
experience within the past 
five years in an alarm 
systems business as defined 
in G.S. 74D-2(a); alarm 
systems installation and 
service or; 

(2) Successfully compl ete 
e i t h e r t+re GP LV, limi te d 
int e rm e diat e or unlimi te d 
examination irs administ e r e d 
by t^Te North Carolina Boa r d 
o^ E. r amin c r -s rri El e ctr ical 
C o n tr ac t ors , pass an oral or 
written examinat ion deemed 



bv 


the 
ivid 


boa 
ual 


rd to 


measure 


an 


inc 


's kn 


owledge 


and 


compete 


nee 


in 


the al 


arm 


sy;; 


tons 


business 






(3) 


Success 


fully 


complete 





either the SP-LV, limitedf 

intermediate or unlimited 

examination as administered 

by the North Carolina Board 

of Examiners of Electrical 

Contractors . 

(b) Applicants engaged 

exclusively in monitoring or 

responding to alarms may be 

issued a limited license which 

authorizes the performance of 

monitoring and responding 

functions only. Applicants for 

such a limited license shall not 

be required to meet the 

experience requirements of 12 

N.C.A.C. Chapter 11 .0202(a). 

.0204 RENEWAL OR RE-ISSUE OF 

LICENSES 
(a) 

( 1 ) a two recent head and 
shoulders color photographs 
of applicant of acceptable 
quality for identification 
one inch by one inch in 
size ; 

(2) t+t« appli»::an t ' s r e n e wal 
statements of the 



result of a local criminal 
history records search by 

the City/County 

Identification Bureau or 
Clerk of Superior Court in 
each county where the 
applicant has resided within 
the immediate preceeding 
twelve months; and 
(3) the applicant's renewal 
fee . 

.0206 RECORDS INSPECTION 
(b) All licensees having 
registered employees shall 
submit a copy of their current 
quarterly Employment Security 
Commission NCUI 101-625 to the 
Administrator's office at the 
same time the form is submitted 
to the Employment Security 
Commission; and an additional 
list of non-Employment Security 
Commission employees currently 
employed by the licensee with 
the dates of employment. Those 
licensees who do not submit an 
E mployment Security Commission 
NCUI 101-625 shall submit the 
names of their employees on a 
form provided by the board. 

SECTION .0300 - PROVISIONS FOR 
REGISTRANTS 

.0301 APPLICATION FOR 
REGISTRATION 

(a) Each a pp lican t fo r 
regis t ra t i o n ox hrs e mploy e r 
sliall comple te an applica t ion 
form pi ' ovid e d by t+re Boa r d . 
Each employer or his designee 



shall 



submit 



and 



sign 



application 



form 



for 



the 



registration of his employee on 



732 



NORTH CAROLINA REGISTER 



a form provided by the board. 
This form, when sent to the 
board, shall be accompanied by a 
set of classifiable fingerprints 
on a standard F.6.1. applicant 
card, two recent head and 
shoulders color photographs of 
acceptable quality for 
identification one inch by one 
inch in size, statements of the 
results of a local criminal 
history records search by the 
City-County Identification 
Bureau or Clerk of Superior 
Court in each county where the 
applicant has resided within the 
immediate preceding 24 months 
and the registration fee 
required by 12 N.C.A.C. Chapter 
11 .0302. 



,0306 



(a) 

(1 



RENEWAL OR RE-ISSUE OF 
REGISTRATION 



(2 



11 
C4 



(b) 
(1 



) two recent head and 
shoulders color photographs 
of applicant of acceptable 
quality for identification 
one inch by one inch in 
size; and 
) th* applicant' s 
r e n g wal f ee . statements of 
the result of a local 
criminal history records 
soarch by the City/County 
Bureau or Clerk of Superior 
Court in each county where 
the applicant has resided 

within the immediate 

preceedinq twelve months; 

) the applicant's renewal 

fee; and 

) proof of liability 

insurance pursuant to G.S. 

74D-9. 



) two recent head and 
shoulders color photographs 
of acceptable quality for 
identification one inch by 
one inch in size; and 



TITLE 15 - NATURAL RESOURCES AND 
COMMUNITY DEVELOPMENT 

Notice is hereby given in 
accordance with G.S. 150B-12 
that the Division of Coastal 
Management intends to amend 
regulations cited as 15 NCAC 7H 
.0602; 7K .0203. 

The proposed effective date of 
this action is May 1, 1987. 

Statutory Authority: G.S. 
113A-103; 113A-118; 113A-124. 

The public hearing will be 
conducted at 10:00 a.m. on 
February 19, 1987 at Marine 
Fisheries Building, 3411 
Arendell Street, Morehead City, 
NC. 



Comment Procedures; Written 
Comments may be submitted within 
30 days prior to hearing toi 

Portia Rochelle 

Division of Coastal Management 

P.O. Box 27687 

Raleigh, NC 27611 

CHAPTER 7 - COASTAL MANAGEMENT 

SUBCHAPTER 7H - STATE GUIDELINES 
FOR AREAS OF ENVIRONMENTAL 
CONCERN 

SECTION .0600 - DEVELOPMENT 
STANDARDS APPLICABLE TO ALL AECS 

.0602 POLLUTION OF WATERS 

No development shall be 
allowed in any AEC which would 
have a substantial likelihood of 
causing pollution of the waters 
of the state in which 
shellfishinq is an existing use 
to the extent that such waters 
would be officially closed to 
the taking of shellfish. under 
standards s«-t by t+t« commission 
■fryr healtli s e rvic e s pursuan t -to 
G-rS-r 130 10 9 .01 . 

SUBCHAPTER 7K - ACTIVITIES IN 

AREAS OF ENVIRONMENTAL CONCERN 

WHICH DO NOT REQUIRE A COASTAL 

AREA MANAGEMENT ACT PERMIT 

SECTION .0200 - CLASSES OF MINOR 
MAINTENANCE AND IMPROVEMENTS 

WHICH SHALL BE EXEMPTED FROM THE 
CAMA MAJOR DEVELOPMENT PERMIT 
REQUIREMENT 

.0203 PRIVATE BULKHEADS: 

RIPRAP: PIERS EXEMPTED 

(a) The N.C. Coastal Resources 

Commission hereby exempts from 

the Coastal Area Management Act 

permit requirement work in the 

estuarine shoreline and public 

trust waters areas of 

environmental concern necessary 

to maintain, repair, and 

construct private bulkheads with 

backfill and to place riprap 

material along shorelines, and 

construct piers and/or mooring 

facilities in waters of North 

Carolina. This exemption is 

subject to the following 

conditions and limitations: 

(1) The activities exempted 

by this regulation shall be 

private, non-commercial 

activities conforming to the 

standards and conditions 

contained in this 

regulation. This exemption 

does not apply to bulkJi e ads 

wi t h backfill smd trr 

plac e m e nt of r iprap ma te rial 

development associated with 

multi-unit residential 



NORTH CAROLINA REGISTER 



733 



developments larger than 
duplexes, nor to, marinas. 



commercial 
community 



harbors, 
neighborhood 



boat access, fish houses or 
similar commercial 

activities . 
(c) Piers: Conditions 
(^) Piers authorized by this 
exemption shall be for the 
exclusive use of the land 
ov/ner, and shall not provide 
either leased or rented 
docking space or any other 



commercial services. 



Fiers 



Initial Application 
Individual 
Residents 
Nonresidents 
Corporate 
Re -examination 

Annual license renewal 

Individual 

Corporate 
Late renewal Penalty 

XTp uO Ou CTayTs 

010.00 per mon t h 

ther e aft e r 



and 



mooring 



f acilit ies 



$25.00 
$50.00 
$50.00 
$50.00 



$40.00 
$50.00 

$50.00 
010.00 

050.00 
maximum 



designed to provide docking Reciprocal registration $75.00 

space for more than four 



boats shall, because 



of 



their greater potential for 
adverse impacts, be reviewed 



through 



the 



permitting 



process, and are, therefore. 



not 



authorized 



by 



this 



exemption . 
TITLE 21 



LICENSING BOARDS 



Notice is hereby given in 
accordance with G.S. 150B-12 
that the North Carolina Board of 
Architecture intends to amend 
regulation cited as 21 NCAC 2 
.0108. 

The proposed effective date of 
this action is May 1, 1987. 

Statutory Authority i G.S. 83A-4; 
83A-6. 

The public hearing will be 
conducted at 2:00 p.m. on 
February 24, 1987 at 501 North 
Blount Street, Raleigh, North 
Carolina 27604. 

Comment Procedures; Written 
comments, opinions and arguments 
concerning these amendments must 
be submitted by February 19, 
1987 to Cynthia Skidmore, 
Executive Secretary, North 
Carolina Board of Architecture, 
501 North Blount Street, 
Raleigh, North Carolina 27604. 
Oral comments for no more than 
10 minutes may be presented at 
the hearing. 

CHAPTER 2 - NORTH CAROLINA BOARD 
OF ARCHITECTURE 

SECTION .0100 - GENERAL 
PROVISIONS 

.0108 FEES 

Fees required for individual 
and corporate applications, 
publications, or services of the 
Board are payable in advance to 
the treasurer of the Board. 
Current amounts are: 



Notice is hereby given in 
accordance with G.S. 150B-12 
that the North Carolina State 
Board of Certified Public 
Accountant Examiners intends to 
adopt regulation cited as 21 
NCAC 8A .0113, repeal regulation 
21 NCAC 8B .0103, amend 
regulations 21 NCAC 8A .0101; 8B 
.0101; .0105; 8D .0202; 8F 
.0103; .0304; 8G .0101; .0112; 
.0201-. 0203; and .0208-. 0211; 
.0401; 8H .0001; .0003; 81 
.0005; 8J .0001; 8K .0201 . 

The proposed effective date of 
this action is June 1, 1987. 

Statutory Authority: G.S. 93-12. 

The public hearing will be 
conducted at 9:00 a.m. on 
Friday, March 13, 1987 at N.C. 
State Board of CPA Examiners, 
1101 Oberlin Road, Suite 104, 
Raleigh, North Carolina 27605. 

Comment Procedures : Any person 
interested in this Rule may 
present written or oral comments 
relevant to the action proposed 
at the public rule-making 
hearing. Anyone planning to 
present comments at the hearing 
should notify the Executive 
Director at the Board offices by 
12:00 noon, March 10, 1987. 
Written statements not presented 
at the public hearing should be 
delivered to the board offices 
not later than April 13, 1987. 

CHAPTER 8 - BOARD OF CERTIFIED 
PUBLIC ACCOUNTANT EXAMINERS 

SUBCHAPTER 8A - DEPARTMENTAL 
RULES 

SECTION .0100 - ORGANIZATIONAL 
RULES 

.0101 FORMAL NAME 

The formal name for the agency . 
Nor t h Carolina Board of 

Cei llf ied Publi c ftcrcrrmTtarrt 

E-x jmliiera is the State Board of 



734 



NORTH CAROLINA REGISTER 



Certified Public Accountant 
Examiners. The informal and 
acceptable title of the board is 
the Noi ' th Carolina S t at e Board 
of C e r t ifi e d Publi c Accountant 
CPA Examiners. 

SUBCHAPTER 8B - RULE-MAKING 
PROCEDURES 



SECTION 



.0100 - PETITIONS FOR 
RULE-MAKING 



.0101 PETITIONS 

Any person wishing to submit a 
petition requesting the adoption 
, amendment or repeal of a rule 
by the North Carolina State 
Board of Certified Public 
Accountant Examiners shall 
address a petition to the 
pL 'e i>idtfiib Executive Director , 
North Carolina State Board of 
Certified Public Accountant 
Examiners, as set forth in 
Subchapter 8A .0102. 



.0103 



AMENDMENT OR REPEAL 
(REPEALED) 



.0105 GRANTING OR DENYING 
PETITIONS 

The Preiildunt Executive 
Director of the North Carolina 
State Board of Certified Public 
Accountant Examiners shall make 
a recommendation to the board 
Enforcement Committee of the 
board and it shall recommend to 
the full board , based on a 
study of the facts stated in the 
petition, whether the public 
interest will be better served 
by granting or denying the 
petition. He or sh e The board 
will consider all the contents 
of the submitted pet i t ions 
petition plus any additional 
information deemed relevant. 

SUBCHAPTER 8D - CONDUCT OF THE 
CONTESTED CASE 

SECTION .0200 - PRE-HEARING 
CONFERENCE 

.0202 PURPOSES 

The purpose of the pre-hearing 
conference will be to discuss 
the following: 

(1) the possibility of 
simplification of the 
issues, 

(2) the elimination of issues 



to 



be contested at the 



hearing, 

(3) the stipulations of facts 
or findings by the parties, 

(4) the identif icatio.i of 
areas where evidence will be 
needed, 

(5) the acceptance of the 



val iditv 



evidence , 



of 



(6) an inJii.alion xrf the need 
for depositions or 
subpoenas, n ee d e d 

(7) the acceptance of the 
findings in some other case 
with relevance to the case 
at hand, 

(8) the need for 
consolidation of cases or 
joint hearings, and 

(9) any other matters which 
will reduce cost or save 
time or otherwise aid in the 
expeditious disposition of 
the contested case. 

SUBCHAPTER 8F - REQUIREMENTS FOR 

CERTIFIED PUBLIC ACCOUNTANT 

EXAMINATION AND CERTIFICATE 

APPLICANTS 

SECTION .0100 - GENERAL 

PROVISIONS • 

.0103 SUBMISSION OF 

EXAMINATION APPLICATIONS 
AND FEES 

(a) The board shall announce 
the time and place for holding 
each examination at least 60 
days prior to the date thereof; 
and all applications for 
examinations must be made to the 
board, accompanied by a check 
for the amount of the 
e.xamination fee and made payable 
to the North Carolina State 
Board of Certified Public 
Accountant Examiners. 

(b) Such applications shall be 
postmarked not later than the 
last day of February for the 
spring examination, and not 
later than the last day of 
August for the fall examination 
, unless one of those dates 
falls on a weekend or federal 
holidav, in which case the 
application must be postmarked 
or received in the board office 
on the no.xt business dav ■ Only 

U.S. Posta l Service 

cnncollnt ions will be considered 
as the postmarks . 

(c) Applicants for initial 
e.xamination will be required to 
have submit official transcripts 
from their schools and 
experience affidavits (if 
required for qualifying to be 
e.xamined) xxn file wi t h th e board 
no t lat e r than Mar c h -1-5 and 

S e pte mb er -1-5 with their 

applications or have them filed 
by the dates set out in 
Paragraph (b) of this Rule. 
Thr ee cer t ifications trf good 
m or al character sign e d by 
pe rsons acceptable -bo t+re b o ard 
shall be submitt e d by -t+te da te s 
strt o-trt in Paragraph (b ) xrf t his 
Rul e . 



proposed ( d ) Three certifications of 



NORTH CAROLINA REGISTER 



735 



good moral character signed by 
persons acceptable to th-2 board 
shall be submitted by the dates 
set out in Paragraph (b) of this 
Rule. 

(e) All applications for 
reexamination must include three 
new certificates of moral 
character, which shall be signed 
by persons acceptable to the 
board. No additional statements 
and affidavits regarding 
experience and education will be 
required . 

SECTION .0300 - EDUCATIONAL 
REQUIREMENTS FOR EXAMINATION 

.0304 EQUIVALENCY EXAMINATIONS 
(a) The board may waive the 
education requirements specified 
in 21 NCAC 8F .0302 and .0402 
upon receipt of proof acceptable 
to the board that the applicant 
has scored: 

(1) in the 50th percentile 
rank or higher on each part 
of either the Graduate 
Record Examination or the 
Graduate Management 
Admission Test; and 

(2) in the 50th percentile 
rank or higher on the Level 
II Achievement Test of the 
American Institute of 
Certified Public 
Accountants . 

SUBCHAPTER 8G - PROFESSIONAL 
ETHICS AND CONDUCT 

SECTION .0100 - GENERAL 
PROVISIONS 

.0101 COMPLIANCE WITH BOARD 

RULES 
(e) The Rules of Professional 
Conduct which follow apply to 
all services performed in the 
practice of public accounting 
including tax and management 
advisory services except: 

( 1 ) v;here the wording of the 
rules indicates otherwise, 
and 
(2) that a licensee who is 
practicing outside the 
United States will not be 
subject to discipline for 
departing from any of the 
rules stated herein so long 
as his conduct is in accord 
with the rules of the 
organized accounting 

profession in the country in 
which he is practicing. 
However, where a licensee's 
name is associated with 
financial statements in such 
a manner as to imply that he 
is acting as an independent 
public accountant and under 
circumstances that would 
entitle the reader to assume 



that United States practices 
were followed, he must 
comply with the requirements 
of Rules in Secti on BQ .0201 
and .0202 8G .0200. 

.0112 REMEDIES AND PENALTIES 

FOR VIOLATIONS 
Any person or firm having 
violated any accountancy law or 
rule of this board may be 
subjected for each such 
violation to any of the 
following degrees of remedies or 
penalties, or a combination of 
such : 
(3) CONDITIONAL CONDITIONED 
UNPUBLISHED REPRIMAND - same 
as unpublished reprimand, but 
conditioned upon the CPA's or 
firm's agreement to meet 
certain additional 

requirements such as e.xtra 
CPE or third party review of 
work product for a particular 
period of time. 

.0113 INVOLVEMENT IN 

LITIGATION OR COURT 
ACTION 

(a) A Certified Public 
Accountant shall notify the 
board within 30 days of any 
conviction or finding of guilt 
regarding the adjudication of a 
crime (excluding noncriminal 
traffic infractions) in any 
jurisdiction . 

(b) A Certified Public 
Accountant shall notify the 
board within 30 days of any 
litigation, judgment or 
settlement in a civil suit, the 
basis of which is grounded upon 
an allegation of negligence, 
incompetence, misconduct, fraud 
or deceit in the firm's or 
licensee's performance of 
accounting services. 

SECTION .0200 - RESPONSIBILITIES 
TO CLIENTS AND COLLEAGUES 

.0201 AUDITING STANDARDS 
( a ) A pc rsun g Umit ti u d txx 
p rac t ic e publ i c anco an t j.iig 
certified public accountant in 
North Carolina shall not permit 
his name to be associated with 
financial statements in such a 
manner as to imply that he is 
acting as an independent publi c 
accoun t an t auditor unless he has 
complied with the applicable 
generally accepted auditing 
standards . 

(b) The Statements on Auditing 
Standards issued by the American 
Institute of Certified Public 
Accountants are hereby adopted 
by reference as amended through 
March 3+-r +966 Doccmber 31 , 198 6 
and shall be considered 
generally accepted auditing 



736 



NORTH CAROLINA REGISTER 



standards for the purposes of 21 
NCAC 8G .0201 (a) . 

(d) Copies of the s t at e m e nt a . 
Statements on Auditing Standards 
may be inspected in the offices 
of the board/ as described in 21 
NCAC 8G .0102. Copies may be 
obtained from the American 
Institute of Certified Public 
Accountants, 1211 Avenue of the 
Americas, New York, New York 
10036 as a part of the "AICPA 
Professional Standards" at cost, 
which approximates f ifte e it 
twenty-four dollars f 015 .00) 
($24.00) in paperback form or in 
looseleaf subscription form at 
one hundred seventy dollars 
($170.00) . 

.0202 ACCOUNTING PRINCIPLES 
(a) A p e rson admi tte d -bo 
pi actic e p ublic aoi-uuiibliit| 
certified public accountant in 
North Carolina shall not express 
an opinion that financial 
statements are presented in 
conformity with generally 
accepted accounting principles 
if such statements contain any 
departure from an accounting 
principle which has a material 
effect on the statements taken 
as a whole, unless he can 
demonstrate that due to unusual 
circumstances the f inanical 
financial statements would 
otherwise have been misleading. 

(c) The Statements of 
Financial Accounting Standards, 
together with those Accounting 
Research Bulletins and 
Accounting Principles Board 
Opinions which are not 
superseded by action of the 
Financial Accounting Standards 
Board, are hereby adopted by 
reference as amended through 
Ma r ch 3+-r 1 9 0G December 31 , 1986 
and shall be considered 
generally accepted accounting 
principles for the purposes of 
21 NCAC 8G .0202(a) . 

(d) Copies of the Statements 
of Financial Accounting 
Standards may be inspected in 
the offices of the board, as 
described in 21 NCAC 8A .0102. 
Copies may be obtained from the 
Financial Accounting Standards 
Board, High Ridge Park, Post 
Office Box 3821, Stamford, 
Connecticut 06905-0821 as part 
of the "AICPA Professional 
Standards" at cost, which 
approximates twenty-five dollars 
($25.00) in paperback form and 
two hundred thirty-five dollars 



($235.00) 



looseleaf 



subscription form. 

.0203 FORECASTS 

(a) A p e rson admitt e d ttr 



prac t ic e p ubli c account iiig 
certified public accountant in 
North Carolina shall not permit 
his name to be used in 
conjunction with any forecast of 
future transactions in a manner 
which may lead to the belief 
that he vouches for the 
achievability of the forecast. 

(b) A p e r&on admi tt ed -ttj 
prac t ic e publi c accounting 
certified public accountant in 
North Carolina shall not permit 
his name to be associated with 
financial statements in such a 
manner as to imply that he is 
acting as a certfied public 
accountant unless he has 
complied with the standards for 
accountants' services on 
prospective financial 
information . 

(c) The Statem e n t Statements 
on Standards for Accountants' 
Services on Prospective 
Financial Information issued by 
the American Institute of 
Certfied Public Accountants -rs 
are adopted by reference as 
amended through December 31 , 
1986 and shall be considered as 
the approved s t andard standards 
for services on prospective 
financial information for the 
purposes of 21 NCAC 8G .0203(b). 

(d) Departures from such 
statements must be justified by 
those who do not follow them. 

(e) Copies of the Statement on 
Standards for Accountants' 
Services on Prospective 
Financial Information may be 
inspected in the offices of the 
board as described in 21 NCAC 8A 
.0102. Copies may be obtained 
from the American Institute of 
Certified Public Accountants, 
1211 Avenue of the Americas, New 
York, New York 10036 as part of 
the "AICPA Professional 



Standards" 



at 



cost , 



which 



approximates twenty-four dollars 
($24.00) in paperback form or 
one hundred seventy dollars 



($170.00) 



looseleaf 



subscription form. 

.0208 ACCOUNTING AND REVIEW 
SERVICES STANDARDS 

(a) A p e rson admitted tr> 
prac t ic e p ubli c accoun t in g 
certified public accountant in 
North Carolina shall not permit 
his name to be associated with 
financial statements in such a 
manner as to imply that he is 
acting as a certified public 
accountant unless he has 
complied with standards for 
accounting and review services. 

(b) The Statements on 
Standards for Accounting and 
Review Services issued by the 
American Institute of Certified 



NORTH CAROLINA REGISTER 



737 



Public Accountants are hereby 
adopted by reference as amended 
through Hai - ch S+r 1 9 00 December 
31 , 1 986 and shall be considered 
as the approved standards for 
accounting and review services 
for the purposes of 21 NCAC 8G 
.0208(a) . 

(d) Copies of the 
s t a te men t s Statements on 
Standards for Accounting and 
Review Services may be inspected 
in the offices of the board, as 
described in 21 NCAC 8A .0102. 
Copies may be obtained from the 
American Institute of Certified 
Public Accountants, 1211 Avenue 
of the Americas, New York, New 
York 10036 as part of the 
"AICPA Professional Standards" 
at cost, which approximates fiv e 
twentv~four dollars (05.00) 
($24.00) in paperback form or 
one hundred seventy dollars 

($170.00) in looseleaf 

subscription form. 

.0209 MANAGEMENT ADVISORY 
SERVICES STANDARDS 

(a) A p e rs o n admi tt ed "bo 
p rac t i ce p ublic accoun t ing 
certified public accountant in 
North Carolina shall not permit 
his name to be associated with 
consultations or engagements in 
such a manner as to imply that 
he is acting as a certified 
public accountant unless he has 
complied with standards for 
management advisory services. 

(b) The Statements on 
Standards for Management 
Advisory Services issued by the 
American Institute of Certified 
Public Accountants are hereby 
adopted by reference as amended 
through March 3-H- 1 9 00 December 
31 , 1 986 and shall be considered 
as the approved standards for 
management advisory services for 
the purposes of 21 NCAC 8G 
.0209(a) . 

(d) Copies of the 
s t a t em e nts Statements on 
Standards for Management 
Advisory Services may be 
inspected in the offices of the 
board, as described in 21 NCAC 
8A .0102. Copies may be 
obtained from the American 
Institute of Certified Public 
Accountants, 1211 Avenue of the 
Americas, New York, New York 
10036 at cost, which 
approximates fiv e si.x dollars 
(05.00) ($6.00) . 

.0210 RESPONSIBILITIES IN TAX 
PRACTICE 

(a) A person admi t t e d ttj 
prac t ic e publ ic m-Luuii t ing 
certified public accountant in 
North Carolina shall not permit 
his name to be associated with 



tax engagements in such a manner 
as to imply that he. is acting as 
a certified public accountant 
unless he has complied with 
standards for tax services. 

(b) The Statements on 
Responsibilites in Tax Practice 
an; issued by the American 
Institute of Certified Public 
Accountants are hereby adopted 
by reference as amended through 
ffarrrh *+-r 1 9 00 December 31 , 1986 
and shall be considered as the 
approved standards for tax 
services for the purposes of 21 
NCAC 8G .0210(a) . 

(d) Copies of the 
stat em eiiti. Statements on 
Responsibilities in Tax Practice 
may be inspected in the offices 
of the board, as described in 21 
NCAC 8A .0102. Copies may be 
obtained from the American 
Institute of Certified Public 
Accountants, 1211 Avenue of the 
Americas, New York, New York 
10036 as part of the "AICPA 
Professional Standards" at cost , 
which approximates sTrx 
twenty-four dollars ( 00 . 00 ) 
($24.00) in paperback form or 
one hundred seventy dollars 

( $170. 00 ) in looseleaf 

subscription form. 

.0211 GOVERNMENTAL ACCOUNTING 

STANDARDS 
( a ) A p- ers o n admitt e d t-o 
prac t ic e p ublic accounting 
certified public accountant in 
North Carolina shall not permit 
his name to be associated with 
financial statements in such a 
manner as to imply that he is 
acting as a certified public 
accountant unless he has 
complied with standards for 
governmental accounting, 
(b) The sta 'ce i i ieiits on 
gov e rnmen t al accoun t i irg 

Statements on Governmental 

Account incT and Financial 

Reporting Standards issued by 
the Governmental Accounting 
Standards Board are hereby 
adopted by reference as amended 
through Ma r ch S+t 1 90 6 December 
31 , 1 986 and shall be considered 
as the approved standards for 
governmental accounting for the 
purposes of 21 NCAC 8G .0211(a). 

(d) Copies of the 
sta te men t s ort gov e rnm e n t al 

accounting S tatements on 

Governmental Accounting and 

Financial Reporting Standards, 
including technical bulle tins 

be 
the 
NCAC 
be 
ntal 
Hrgh 
3&2+ 



and interpretations, may 
inspected in the offices of 
board, as described in 21 
8A .0102. Copies may 
obtained from the Governtiie 
Accounting Standards Board, 
Ril^e Park, - Post Office Box 



738 



NORTH CAROLINA REGISTER 



9125, Dept. 285, Stamford, CT 
0G90D 0021 06925, at cost, which 
approximates forty-seven dollars 
and fifty cents ($47.50). In 
addition to the basic set, an 
updating subscription service is 
available for about fortv-fonr 
dollars ($44.00) annually. 

SECTION .0400 - CONTINUING 
PROFESSIONAL EDUCATION 

.0401 CONTINUING PROFESSIONAL 
EDUCATION 

(c) Certificate holders in 
active status must complete 40 
hours of continuing professional 
education by December 31 of the 
year preceding the July 1 
renewal date, except as follows: 

(4) Persons having initial 
ccrif icat e certificate 
applications approved by the 
board in October-December 
would have to complete 10 
CPE hours during the same 
calendar year. 

(d) When an individual 
completes more than the required 
number of hours of CPE in any 
one calendar year, the extra 
hours, not in excess of 20 
hours, may be carried forward 
and treated as hours earned in 
the following year. No p e rs o n 
may carry forward &PE h o u r s 
c o mple te d prior to tli e da te rrf 
cer t if ic jt tt approval . Howev e r , 
Any CPE hours completed during 
the calendar year in which the 
certificate is approved bv the 
board may be used for that 
year's requirement. 

SUBCHAPTER 8H - RECIPROCITY 

.0001 RECIPROCAL CERTIFICATES 
(c) If an applicant for a 
reciprocal certificate does not 



filing 



date 



of 



his 



meet 



all 



of 



the 



current 



requirements imposed on 



an 



appl icant 



for 



original 



certificate, then the board will 



consider 



the 



following 



requirements to be substantially 
eqtiivalent to the requirements 
established bv G.S. 93-12 if all 
are met . 
(1 ) 



Ace 



The applicant has the 
estricted privilege to 
the Certified Public 
ountant title and to 



practice public accountancy 
in any state or terriroty of 
the United States, or the 
District of Columbia. 
(2) The applicant has had 
four years of e.xperience in 
the practice of public 



accountancy after passing 



the Uniform CPA Examination 
and within ten years 



immediately preceding the 



application. 

(3) The applicant shall have 
received a score of at least 
75 on each part of the 
Uniform CPA Examination. 

(4) If the applicant received 
the CPA certificate referred 
to in (1) of this Rule, more 
than four years prior to the 
f il ing date of his 



application. 



then 



the 



applicant 



shall provide 



evidence of completion of at 
least 80 hours of continuing 
professional education, in 

courses meeting the 

requirements of 21 NCAC 8G 
■0404, during the two years 
preceding the filing date of 
his application. 

.0003 LICENSES FOR TEMPORARY 
PRACTICE 

(a) An out-of-state 
certificate holder desiring to 
perform engagements within this 
state must perform the 
following : 

( 1 ) apply to the board for 
temporary license for all 
partners or principals of 
the firm and for all other 
certified public accountants 
that will be engaged 
thereon; 

(2) furnish to the board 
affidavi t s an affidavit 
signed by ttt« secr et ary an 
official of the board which 
issued t li e ir the certified 

accountant 

certificate , 

numbers number 

cei t if icates 

and that the 

applicant is 



public 

c e r t ifi c at e s 
showing the 
of the 
certificate 
applican t s 



in good standing; 

(3) furnish the board with a 
statement that the work of 
the engagements will be done 
by or in charge of a 
certified public accountant; 
and 

(4) pay an initial or 
renewal fee to be set by the 
board annually not to exceed 
seventy-five dollars 
($75.00) for each fiscal 
year or fraction thereof for 
each applicant. 

SUBCHAPTER 81 - REVOCATION OF 

CERTIFICATES AND OTHER 

DISCIPLINARY ACTION 

.0005 REVOCATION OF 
CERTIFICATES 

(a) When a certificate is 
revoked, the certificate holder 
shall return the certificate to 
the board office within five 
days of receipt of notice of 
revocation . 



NORTH CAROLINA REGISTER 



739 



SUBCHAPTER 8J - RENEWALS AND 
REGISTRATIONS 

.0001 ANNUAL RENEWAL OF 
CERTIFICATES 

(a) The board shall require 
the renewal of all certificates 
of qualification annually on the 
first day of July. t+re The 
charge for such renewal shall be 
set annually by the board not to 
exceed fifty dollars ($50.00). 

(b) The board shall provide 
renewal cards only upon request 
of certificate holders. 

(c) A certificate shall be 
forfeited , pursuant to G.S. 
93-12(5), for failure to: 

( 1 ) pay t liis the renewal fee 

> or 

(2) submit a properly 

conpleted certificate 

renewal application form, or 

(3) submit a properly 

completed cont inuinq 

professional cducat ion 

report, as required by 21 
NCAC 8G .040 1, .0405, and 
.0406; 

within 30 days after demand for 
such r e n e wal fe e shall have been 
made by the board via 
first-class mail to tne last 



mail inq address 



file- 



C ert ificates r e v o k e d frrr 
noil paymen t vf r e newal f e es may 
ire reins t a t ed -in th e discretion 
trf -Hre board upon paymen t tyf a 
fee no t exce e din g sev e nty f-irrs 
dollars (075.00) . 

(d) Certificates forfeited 
for failure to renew may be 
reinstated within twelve months 
in the discretion of the board 
upon payment of a fee not 
e.xceedinq seventy-five dollars 
($75.00) and compliance with the 
CPE requirements stated in 21 
NCAC 8G .0407. Certificates of 
moral character will not be 
required unless specifically 
requested by the board. 

(e) When a certificate is 
forfeited frrr failur e trr pvy -ttre 
ren e wal f** , the certificate 
holder shall return the 
certificate to the board office 
within five days of receipt of 
notice of forfeiture, or submit 
an affidavit, on a form supplied 
by the board, that the 
certificate has been destroyed, 
or has been lost and will be 
returned to the board if found. 

SUBCHAPTER 8K - PROFESSIONAL 
CORPORATIONS 

SECTION .0200 - PRACTICE 

PROCEDURES OF PROFESSIONAL 

CORPORATIONS 

.0201 CORPORATE NAMES 



The corporate name of a 
professional corporation 

registered under these rules 
shall include only the names of 
one or more of the present or 
former shareholders or of 
partners associated with a 
predecessor accounting firm and 
shall contain the wording 
"corporation," "incorporated," 
or "professional association," 
or an abbreviation of either of 
the foregoing, "Corp.," "Inc.," 
"ltd.," "Co.," "P.C. ," or 
"P. A.". The use of "CPA" or 
"Certified Public Accountant (s )" 
in the corporate name is 
encouraged, but not required. 



TITLE 24 



INDEPENDENT AGENCIES 



Notice is hereby given in 
accordance with G.S. 150B-12 
that the N.C. Housing Finance 
Agency intends to amend 
regulations cited as 24 NCAC ID 
.0102 and .0103; 24 NCAC 1H 
.0103(a)(1); 24 NCAC U .0101 
through .0107; .0201 through 
.0203. 

The proposed effective date of 
this action is May 1, 1987. 

Statutory Authority: G.S. 
122A-2; 122A-3; 122A-5; 
122A-5.1; 122A-5.2; 122A-5.4; 
122A-5.5; 122A-8. 

The public hearing will be 
conducted at 10:00 a.m. on 
February 16, 1987 in the Board 
Room, N.C. Housing Finance 
Agency, 3300 Drake Circle, Suite 
200, Raleigh, NC 27607. 

Comment Procedures: Written 
comments concerning these 
amendments must be submitted by 
February 14, 1987 to the Program 
Director, N.C. Housing Finance 
Agency, P.O. Box 28066, Raleigh, 
North Carolina 27611. Oral 
comments may be presented at the 
hearing . 



CHAPTER 1 



N.C. HOUSING FINANCE 
AGENCY 



SUBCHAPTER ID - SINGLE FAMILY 
MORTGAGE PURCHASE PROGRAM 

SECTION .0100 GENERAL 
INFORMATION 

.0102 ELIGIBLE PERSONS AND 

FAMILIES 
(a) For loans purchased with 
the proceeds of all bonds other 
than tax e.xempt bonds issued 
after January 1, 1987: 

■irtry ( 1 ) The agency hereby 

finds and declares that 
income eligible persons and 



740 



NORTH CAROLINA REGISTER 



families xrf low er invLum e > 
within the meaning of the 
act, are deemed to be those 
persons and families who 
satisfy the following 
criteria: insufficient 
total income, when size of 
family is considered, to 
obtain on the normal housing 
market without subsidy, from 
available housing supply in 
a given geographical area of 
residence in North Carolina, 
housing found to be decent, 
safe and sanitary. The 
agency has carefully 
considered all the factors 
which the General Assembly 
has specified in the 
statutory definition of 
"persons and families of 
lower income." A purpose of 
the act is to foster the new 
construction and substantial 
rehabilitation of 

residential housing in the 
state for persons and 
families of lower income by 
assisting in the permanent 
financing of such housing 
and that the income limits 
used by the agency in 
ascertaining who are 
"persons and families of 
lower income" must reflect, 
among other things, the 
costs of such newly 
constructed and 

substantially rehabilitated 
housing. The General 
Assembly intended, by means 
of the act, to assist not 
only those persons and 
families eligible for 
federal housing assistance 
predicated on a lower income 
basis, but also those 
persons and families whose 
incomes are too high to 
qualify them for such 
federal assistance but are 
to low to enable them to 
obtain, without governmental 
assistance, a mortgage loan 
to finance the purchase of a 
decent, safe and sanitary 
home. The agency can best 
effectuate the purposes of 
the act by establishing 
income limits for income 

eligible persons and 

families for specific areas 
of the state which represent 
the agency's determination 
of the maximum income level 
which persons and families 
in such area may have in 
order to qualify for 
assistance under the act . 
Lower income Income 
eligibility is defined as a 
function of median income by 
area, construction cost, and 
mortgage loan criteria. 



Each factor is applied as 

follows to achieve an 

equitable result: 

•H-^ (A) The agency used 9^ 
1 50 percent of median 
income . 

■(-24 (B ) Housing construction 
costs were determined for 
a prototype of a modest 
house in various areas of 
the state. The Marshall 
Swift Handbook was used to 



the 



base 
cost . 



the 
cost 



establish 
construction 
Finally, minimum lot costs 
in rural and urban areas 
were added to 
construction 
determinations to produce 
a finished housing cost 
for urban areas and for 
rural areas. 
■(-3-)- (C) Mortgage lending 

industry underwriting 

standards which establish 

the amount of loan for 

which a borrower may 

qualify will be used by 

the agency. The agency 

assumes that the borrower 

would seek 100 percent 

financing at the FHA/VA 

maximum rate on a 30 year 

amortization and that the 

borrower would be 

restricted to using 28 

percent of his gross 

monthly income to make the 

monthly mortgage payment 

which would include 

principal interest, taxes 

and insurance . 

-(-4-)- (D ) Composite figures 

for median income and for 

housing cost and mortgage 

loan underwriting were 

calculated upon the 

following premises: 

■i-M- ( i ) The median income 

factor relates to 

eligibility for other 

housing predicated upon 

lower income basis. 

(D ) ( ii ) The house cost/ 

underwriting figure 

establishes minimum 

financial eligibility in 

the normal housing 

market . 

the combination of the two 

figures at a 50:50 ratio 

establishes the maximum 



limits 



for 



the 



income 
agency 
■fb4 (2 ) The agency has, in 
accordance with 
considered the 
family size 
sufficiency of 
housing needs and determined 
that the income limits 
computed in accordance with 
this Section must be 
increased by eight hundred 



the act, 

effect of 

on the 

income for 



NORTH CAROLINA REGISTER 



741 



dollars ($800.00) a year for 
the fifth family member and 
for each additional family 
member thereafter in a large 
lower income family in order 
to reflect the additional 
costs of providing housing 
for large families, and that 
the income limits for one 
person households shall be 
three-fourths of such 
limits, except when two or 
more persons in a 
non-dependent relationship 
are jointly purchasing a 
home, the income of any one 
person in this relationship 
cannot exceed the one-person 
household limit established 
by the agency, nor can the 
combined incomes of these 
persons exceed the income 
limits for families 
established by the agency. 
(3) An applicant's income 

will be calculated by 
including all income in 



whatever form 



and 



from 



whatever source derived, 
including the following: 
compensation for services, 
including fees, commissions 
and similar items; gross 

income derived from 

business; gains derived from 

dealings in property ; 

interest; rents royalties; 

dividends ; al imonv and 

separate maintenance 

payments; annuities; income 



from life insurance 



and 



endowment 



contracts ; 



pensions ; 



from 



discharge of indebtedness; 



distribut ive 



share 



of 



partnership income; income 
in respect of a decendent; 
income from an interest in 
an estate or trust; payments 
made by or on behalf of an 
employer by reason of death 
of an employee to the widow 
or heirs of the employee; 
recovery of bad debts; 



amounts 



received 



reimbursement for losses; 
prizes and awards: amounts 
received or made available 
from individual retirement 
accounts , annuit ic s and 



rot ironcnt 



bonds . 



In 



addition, the calculation of 
an applicant's income for 

this purpose will be 

increased by an amount equal 
to 10 percent of the value 
of all the applicant's 
non-income 



producing 



tangible assets, excepting 

personal property and 

including real property, 
securities and stocks. 
(b) For loans purchased with 



the proceeds of ta.x exempt bonds 
issued after January 1, 1987 
income eligible persons and 
families is defined by the 
agency to be those persons and 
families with incomes not 



exceeding 



the 



income 



requirements 



for 



mortgage 



revenue bonds established in 
Section 143(f) of the Internal 
Revenue Code 1986. 

( 1 ) The sources used in 

calculating an applicant's 
income will be determined 
according to the rules 
established by the Internal 
Revenue Service in Revenue 
Ruling 86-124 until final 
regulations are issued by 

the Internal Revenue 

Service, at which time those 
final regulations will be 
used to determine the 
services used to calculate 
an applicant's income. 
-(-b-> ( c ) In no instance will any 
person or family having net 
assets exceeding forty thousand 
dollars ($40,000) be considered 
eligible for assistance by the 
agency, except that for persons 
between the ages of 62 and 64, 
the net assets limit shall be 
fifty thousand dollars 
($50,000), for persons 65 years 
of age and over, the net assets 
limit shall be sixty thousand 
dollars ($60,000), and for 
handicapped persons requiring a 
constant attendant the net 
assets limit shall be seventy 
five thousand dollars ($75,000). 
For the purposes of this 
Section, "net assets" shall mean 
the total assets of the borrower 
excluding household goods, in 
the Home Improvement Loan 
Program, the structure to be 
improved and its site, any debts 
against the borrower and 
excluding also, any assets of a 
borrower determined by the 
executive director to be 
appropriate for exclusion, 
including, without limitation, 
assets which in the 
determination of the executive 
director the borrower is 
dependent upon for a livelihood. 
Any such determination that 
assets are appropriate for 
exclusion shall bo evidenced by 
a certificate signed by the 
executive director and filed 
with tne secretary of the 
agency . 

(d) The agency deems that 
persons and families with annual 
incomes not in e.xcess of the 
income limits established by 
application of the above foimula 
definitions and with net assets 
not more than those set forth in 
thxs Rule, are persons and 



742 



NORTH CAROLINA REGISTER 



families which require such 
assistance as is made available 
by the act and such persons and 
families are hereby deemed, 
therefore, to be persons and 
families of lower income 
eligible to occupy residential 
housing financed by means of 
such assistance. 

.0103 PERSONS AND FAMILIES OF 
MODERATE INCOME 
(REPEALED) 

SUBCHAPTER 1H - MULTI-FAMILY 
MORTGAGE PURCHASE PROGRAM 

SECTION .0100 - GENERAL 
INFORMATION 

.0103 PERSONS AND FAMILIES OF 
MODERATE INCOME 

(a) The agency hereby finds 
and declares that persons and 
families of moderate income, 
within the meaning of the Act, 
are deemed to be those persons 
and families who satisfy the 
following criteria: 

insufficient total income, when 
size of family is considered, to 
obtain on the normal housing 
market from available housing 
supply in a given geographical 
area of residence in North 
Carolina, housing found to be 
decent, safe and sanitary 
without undue financial 
hardship. The agency has 
carefully considered all the 
factors which the General 
Assembly has specified in the 
statutory definition of "persons 
and families of moderate 
income." A purpose of the Act 
is to foster the new 
construction and substantial 
rehabilitation of residential 
housing in the state of persons 
and families of moderate income 
by assisting in the permanent 
financing of such housing and 
that the income limits used by 
the agency in ascertaining who 
are "persons and families of 
moderate income" must reflect, 
amount other things, the cost of 
such newly constructed and 
substantially rehabilitated 
housing. The General Assembly 
intended, by means of the Act, 
to assist not only those persons 
and families eligible for 
federal housing assistance, 
predicated on a lower income 
basis, and those persons and 
families whose incomes are too 
high to qualify them for such 
federal assistance but are too 
low to enable them to obtain, 
without governmental assistance, 
a mortgage loan to finance the 
purchase of a decent, safe and 
sanitary home, but also those 



who could not acquire such 
housing without undue financial 
hardship. The agency can best 
effectuate the purpose of the 
Act by establishing income 
limits for specific areas of the 
state which represent the 
agency's determination of the 
maximum income level which 
persons and families in such 
areas may have in order to 
qualify for assistance under 
this median income by area, 
construction costs, and mortgage 
loan underwriting criteria. 
Each factor is applied as 
follows to achieve an equitable 
result : 

( 1 ) The agency will use 120 
1 50 percent of median income 
as published periodically by 
the Department of Housing 
and Urban Development . 

SUBCHAPTER 1J - HOME IMPROVEMENT 
LOAN PURCHASE PROGRAM 

SECTION .0100 - GENERAL 
INFORMATION 

.0101 OBJECTIVES 

(a) One of the basic 
objectives of the agency is to 
finance the making of loans to 
persons and families of lower 
and moderate-income to be used 
to enable such persons and 
families to rehabilitate 
e.xisting homes. The agency has 
established a financing program 
to achieve these objectives 
(herein referred to as the "home 
improvement loan purchas e 
program" ) . 

-ttry Th« agency finan c ing 
activity und er t h e hom e 
improvem e n t l o an purchas e 
pi ' ogL ' a ii i Ts under th e lio me 
impr o v e m e n t loan no te purcliase 
agreement (li e r e inaf t er i ef ei. Led 
tt> as "no te purchase 
agr e e me n t " ) . 

-(-c-> (b ) The agency, recognizing 
that the need for assistance to 
home owners (as contemplated by 
the act) is very great and 
further recognizing that the 
agency funds available to meet 
that need are small in 
comparison to that need, will 
use its best efforts to spread 
its available funds through the 
state in an equitable manner 
designed to insure that all 
areas of the state have a fair 
opportunity to participate in 
the program . 

-(-d-> (c ) As funds for the 
purchase of home improvement 
loans become available to the 
agency, tlirough t+re sal e of 
agenoy bonds such funds shall 
may be made available to North 
Carolina home improvement loan 



NORTH CAROLINA REGISTER 



y-ijs 



lenders. Such lenders upon 
agency notification of the 
availability of such funds, may 
indicate their interest in 
participating in the home 
improvement loan n-a+-e pTH 'c lia&e 
program by execution of a form 
specified as such by the agency. 

.0102 INCOME ELIGIBLE PERSONS 

AND FAMILIES 
Tli e provisions xrf 24 NCAG 
+B .0102. rersoi ' ia arrd Fa m ili e s 
trf Low e r Income vmi S4 NGAO +B 
■0103, Persons and Famili e s o^ 
Moderat e Inc o m e , will apply 
throughou t t his Sub c hap te r . 

(a) For loans financed with 
the proceeds of all funds other 
than ta.x-exempt bonds issued 
after January 1, 1987: 

( 1 ) The agency hereby finds 
and declares that income 



eligible 



persons 



and 



families within the meaning 
of the act , are deemed to be 
those persons and families 
who satisfy the following 
criteria : 



insufficient 



total income, when size of 
family is considered, to 
obtain on the normal housing 
market without subsidy, from 
available housing supply in 
a given geographical area of 
residence in North Carolina, 
housing found to be decent, 
safe and sanitary. The 



agency 



has 



carefully 



considered all the factors 
v)hich the General Assembly 
has specified in the 



statutory 



definition 



of 



'persons and families of 
lower income." A purpose of 
the act is to foster the new 
construction and substantial 

rehab il it at ion of 

residential housing in the 

state for persons and 

families of lower income by 
assisting in the permanent 
financing of such housing 
and that the income limits 
used by the agency in 



ascertaining 



who 



'persons and families of 
lower income" must reflect, 
among other things, the 
costs of such newly 



constructed 



and 



substantially rehabilitated 



housing . 



The 



General 



Assenhly intended, by means 
of the act, to assist not 



only 



those 



families 



persons 



and 



eligible 



for 



federal housing assistance 
predicated on a lov;er income 
basis, but also those 
persons and families v;hose 
incomes are to high to 



qualify them 



for 



such 



federal assistance but are 



too low to enable them to 
obtain, without governmental 
assistance, a mortgage loan 
to finance the purchase of a 
decent, safe and sanitary 
home. The agency can best 
effectuate the purposes of 
the act by establishing 
income limits for income 



eligible 



persons 



and 



families for specific areas 
of the state which represent 
the agency's determination 
of the maximum income level 
which persons and families 
in such area may have in 



order 



to 



qualify 



for 



assistance under the act. 
Income eligibility defined 
as a function of median 
income by area, construction 
costs, and mortgage loan 



criteria . 



Each factor is 



applied as 



follows 



to 



achieve an eguitable result: 
(A) The agency used 150 
percent of median income. 



(B) Housing construction 
costs were determined for 
a prototype of a modest 
house in various areas of 
the state. The Marshall 
Swift Handbook was used to 



establish 



the 



base 



construction 



costs . 



Finally, minimum lot costs 
in rural and urban areas 
were added to the 



construction 



cost 



determinations to produce 
a finished housing cost 
for urban areas and for 
rural areas . 
( C) Mortgage lending 

industry underwriting 

standards which establish 
the amount of loan for 



which 



borrower 



may 



qualify will be used by 



the agency. 



The agency 



assumes that the borrower 
would seek 100 percent 
financing at the FHA/VA 
maximum rate on a 30 year 
amortization and that the 



borrower 



would 



be 



restricted to using 28 



percent of 



his 



gross 



monthly income to make the 
monthly mortgage payment 

which would include 

principal interest, ta.xes 
and insurance . 
(D) Composite figures for 



median income 



and 



for 



housing costs and mortgage 
loan underwriting were 



calculated 



upon 



the 



follov;ing premises: 
(i) The median income 

factor relates to 

eligiblity for other 

ho 

lo 



using predicated upon 
wer income basis. 



744 



NORTH CAROLINA REGISTER 



(ii) The house cost/ 

underwriting figure 



establishes 



minimum 



financial eligibility in 

the normal housing 

market . 
The combination of the two 
figures at a 50:50 ratio 
establishes the maximum 
income limits for the 
agency . 
(2) The agency has, in 

accordance with the act, 
considered the effect of 

family size on the 

sufficiency of income for 
housing needs and determined 
that the income limits 
computed in accordance with 

this Section must be 

increased by eight hundred 
dollars ($800.00) a year for 
the fifth family member and 
for each additional family 
member thereafter in a large 
lower income family in order 
to reflect the additional 
costs of providing housing 
for large families, and that 
the income limits for one 
person households shall be 

three -fourths of such 

limits, except when two or 

more persons in a 

non-dependent relationship 
are jointly purchasing a 
home, the income of any one 
person in this relationship 
cannot exceed the ono-porson 
household limit established 
by the agency, nor can the 
combined incomes of these 
persons exceed the income 



limits 



for 



families 



established by the agency. 
(b) For loans financed with 



the proceeds of tax-e.-^empt bonds 
issued after January 1, 1987 



income eligible persons 



and 



families is defined by the 
agency to be those persons and 
f amil ies with income not 



exceeding 



the 



requirements 



for 



mortgage 



revenue bonds established in 
Section 143(f) of the Internal 



Revenue 



Code 



amended . 
( 1 ) The 



of 1986, as 



sources used in 



calculating an applicants 
income will bo determined 



according to 



the 



rules 



established by the Internal 
Revenue Service in Revenue 
Ruling 86-124 until final 
regulations are issued by 



the 



Internal 



Revenue 



Service, at which time those 
final regulations will be 



used 



to 



determine 



the 



sources used to calculate an 



applicant's income. 
(c) In no instance will 



any 



person or family having net 
assets exceeding forty thousand 
dollars ($40,000) be considered 
eligible for assistance by the 
agency, except that for persons 
between the ages of 62 and 64, 
the net assets limit shall be 

fifty thousand dollars 

($50,000), for persons 65 years 
of age and over, the net assets 
limits shall be sixty thousand 
dollars ($60,000), and for 
handicapped persons requiring a 
constant attendant the net 
assets limit shall be seventy 
five thousand dollars ($75.000). 
For the purposes of this 
Section, "net assets" shall mean 
the total assets of the borrower 
determined by the executive 
director to be appropriate for 
e.xclusion, including, without 
limitation, assets which in the 
determination of the executive 
the borrower is dependent upon 

for a livelihood. Any such 

determination that assets are 
appropriate for exclusion shall 
be evidenced by a certificate 
signed by the e.xecutive director 
and filed with the secretary of 
the agency. 

(d) The agency deems that 
persons and families with annual 
incomes not in excess of the 
income limits established by 
application of the above formula 
definitions and with net assets 
not more than those S'St forth 
in this Rule, are persons and 
familes which require such 
assistance as is made available 
by the act and such persons and 
families are hereby deemed, 
therefore, to be persons and 
familes of lower income eligible 
to occupy residential housing 
financed by means of such 
assistance . 

.0103 ELIGIBLE BORROWER 
To be eligible for a home 
improvement loan, und er t+re not e 
purchas e agre e ment aegmc - n t tyf 
t liis program, each applicant 
must meet all of the following 
requirements : 
( 1 ) be a person or family of 
lower or moderate-income; 

(2) possess nt l e ast a on e 

— b hi r d an ov;nership interest 
in and occupy the property as 
his or her principal 
residence; and 

(3) intend to use the home 

to be rehabilitated for his 
or her personal or family 
residence. and 
V ■! ) meet all ox tiic 

r e quir e men t s erf S e ction 1 03A 
o-f -HTe Int e rnal R e v e nu e Cod e 
trf 1 954, -firs aineiided in 
1900) . 



NORTH CAROLINA REGISTER 



745 



.0104 ELIGIBLE PROPERTY 

In order to be the subject, 
of a loan made to secure a home 
improvement loan under this 
program, a home must meet the 
following requirements: 

( 1 ) be located in the State • 
of North Carolina; 

(2 ) ire iwprov e mei ' t t s eligibl e 
■ftrr ii ioi ' tgaga insuranc e und e r 
IWB-r FttA Titl e i R e quiremmiLa. 
und e r S e c t ion 1 703 , Ti t l e +2— 
Uni te d S t a t es Cod e , trr 
privat e m or t gag e insuranc e ; 

(3 ) be n firs t or s e cond li en 
on t li e proper t y, consist e nt 
wi t h Nui ' th Carol ina law, and 
conform wi t lt -Htw standards 
per sc rib e d by th^ ag e ncy im 
irts n ote purcl ' ias e agr ee m e nt 
and otl ' ier forms ; 

( 4 ) ( 2 ) be improved to comply 
with any applicable state, 
country or municipal health, 
building, fire or other local 
property rehabilitation 
standards; 

(D ) ( 3 ) be a year-round 

residence containing no more 
than four dwelling units; and 

(G ) C 4 ) be a home attached to a 
permanent foundation. «Trd 

yr) meet al 1 the r eiyuiie merit s 
«rf Sect iun 1 03A of t+r« 
In te rnal Revenue C o d e , -fws 
am e nd e d -irt 1 900 ) . 

.0105 ELIGIBLE LOAN 

■i-gr^ The loan to be 
originated or purchased by the 
agency ujider -Hre n ote p urchas e 
ag re em e n t segment o-f t+re program 
shall be executed on a form 
approved by the agency. 

-(-b-> L o ans -to be purchas e d by 
t+re ag e ncy s hall -in wl-1 r e spm-ts 
comply w it h Sect ion 1 05A tri ttre 
Internal R e venu e Cod e erf 1 95 4 
-(-ers amended -irt 1 900 ) . 



,0106 



ELIGIBLE LENDER 
(REPEALED) 



.0107 COMPLIANCE WITH TAX ACT 
Mortgages to be purchased bv 
the agency, with tax-exempt bond 
proceeds, shall in all respects 
comply with Section 103A of the 
Internal Revenue Code of 1954, 
as amended. 

SECTION .0200 - CONTRACTS AND 
FORMS 

.0201 ELIGIBLE LENDER CONTRACT 
FORMS 

( a ) For loans purchased bv the 
agency eligible lenders shall 
establish their contractual 
relationship with the agency by 
entering into the North Carolina 
Housing Finance Agency "Home 
Improvement Loan Note Purchase 
Agreement" form contract which 



is described in greater detail 
in the Home Improvement Loan 
Program procedural manual . 

(b) Under the "Home 
Improvement Loan Note Purchase 
Agreement" form contract the 
lender and agency agree to the 
following : 

( 1 ) the agency agrees to 

purchase from the lender and 
the lender agrees to sell a 
given amount of home 
improvement loans; 

(2) each loan shall should 
generally be a firs t trr 
second lien on lands and 
improvements constituting 
occupied, single family, or 
multifamily units consisting 
of no more than four units; 

(3) lender's interest in the 
home improvement loan and 
Deed of Trust shall be 
assigned to the agency at 
purchase ; 

(4) appraisal may be 
performed on each loan 
exceeding five thousand 
dollars ($5,000); 

(5) the loan term shall 
should generally not exceed 
15 years, although the 

agency may , at its 

discretion, approve longer 
loan terms if it deems 
necessary; 

(6) monthly payment of 
principal and interest and 
level payment amortization 
is required; 

(7) mortgage insurance or 
guaranty is required as a 
condition of purchase of the 
home improvement loan; 

(8) lender must comply with 
all applicable state, local 
and federal laws and 
regulat ions ; 

(9) the agency shall not be 
obligated to purchase any 
home improvement loans under 
any such such agreement 
unless the agency has 
approved the making of such 
home improvement loans in 
accordance with the act; 

(10) misrepresentation or 
breach of Warranty by the 
lender as to a home 
improvement loan shall 
entitle the agency to 
require the lender to 
repurchase such home 
improvement loan; and 

(11) all obligations under 
contract that are to be 
financed with bond proceeds 
are subject to the 
successful sale and delivery 
by the agency of its bonds 
and receipt of the bond 
proceeds . 

. J202 SERVICING AGREEMENT 



746 



NORTH CAROLINA REGISTER 



The agency may directly service 
loans originated or purchased by 
the agency or sign an agreement 
with a master servicer. The re 
shall be a The Master Servicer 
■to shall service all home 
improvement loans pu r chas e d by 
for the agency pursuant to a 
"North Carolina Housing Finance 
Agency Servicing Agreement" Iro 
which shall be entered into by 
the agency and Master Servicer. 
The agency and the Master 
Servicer agree to the following: 

(1) Servicer shall provide 
that improvements are 
insured and will diligently 
ascertain loss or damage; 

(2) Servicer shall accept 
monthly payments, tax, 
escrow payments and shall 
report to the agency on all 



home improvement loans being 
serviced; 

(3) Servicer shall take all 
appropriate actions in case 
of default; and, if 
instituted, protect the 
premises pending 
foreclosure; 

(4) Servicer shall agree to 
comply with all applicable 
laws and regulations and 
shall not be authorized to 
vary any terms of the note 
or Deed of Trust purchased 
by the agency; and 

(5) The servicing agreement 
is not assignable without 
agency consent . 

.0203 FORMS ACCOMPANY HOME 
IMPROVEMENT LOANS 
APPROVED BY AGENCY 
(REPEALED) 



NORTH CAROLINA REGISTER 



747 



FINAL RULES 

When the text of any adopted 
rule differs from the text of 
that rule as proposed, upon 
request from the adopting 
agency, the text of the adopted 
rule will be published in this 
section . 

When the text of any adopted 
rule is identical to the text of 
that as proposed, adoption of 
the rule will be noted in the 
"List of Rules Affected" and the 
text of the adopted rule will 
not be republished. 

Adopted rules filed by the 
Departments of Correction, 
Revenue and Transportation are 
published in this section. 
These departments are not 
subject to the provisions of 
G.S. 150B, Article 2 requiring 
publication of proposed rules. 

TITLE 17 - DEPARTMENT OF REVENUE 

CHAPTER 6 - INDIVIDUAL INCOME 
TAX 



SUBCHAPTER 68 



INDIVIDUAL 
INCOME TAX 



SECTION .3000 - CONTRIBUTIONS 

.3802 - DEDUCTIONS 

(i) There must be a business 
connection before a payee or 
endorser of a note may claim a 
loss in case of default. The 
debt must be legal and must 
exist in fact. The liability of 
the individual claiming the loss 
must be one that can be enforced 
in the courts. In the case of a 
payee of a note, the note must 
have been in connection with a 
transaction from which gain was 
payee of the note, the note is 
usually considered to have been 
issued for business purposes. 
In the case of a loss resulting 
from an endorser having to pay 
the obligation, the endorser 
must have stood to gain either 
directly or indirectly fro-n the 
transaction. The endorsement 
for a member of the endorser's 
accommodation is not considered 
a transaction entered into for 
profit. On the other hand, an 
endorsement in an attempt to 
protect one's investment, such 
as an endorsement of a 
corporation note by a 
stockholder of the corporation, 
might be construed to have a 
business connection, and a loss 
resulting from such endorsement 
is usually deductible. Even the 
endorsement of an employee's 



note in an effort to retain the 
services of the employee can in 
some cases be construed to have 
a business connection for the 
purpose of determining whether a 
loss from the endorsement is 
deductible. In all cases in 
which a loss for an endorsement 
of a note is claimed the 
endorser must be able to prove a 
definite business connection. 

The time when a loss from a 
note or note endorsement may be 
claimed as a deduction is 
determined by whether the 
indivudual is on a cash or an 
accrual basis. A cash basis 
ta.xpayer may claim an allowable 
loss for a note endorsement at 
the time payment is made by him 
and not at an earlier date when 
it is determined that there will 
be a loss. If a cash basis 
taxpayer, who has endorsed a 
note, gives his own note in 
payment of his liability as an 
endorser, he cannot deduct the 
loss until he pays his note. In 
the case of an endorsement of a 
note by an accrual basis 
taxpayer, the loss may be 
claimed at the time the amount 
of the loss may be determined 
with reasonable accuracy. 

The payee of a note on which 
the maker has defaulted may 
claim a loss at the time the 
amount of the loss may be 
determined with reasonable 
accuracy, provided the amount 
claimed has previously been 
included in income or provided 
the transaction upon which the 
note was based was in connection 
with a trade or business or in 
connection with a business 
transaction from which gain was 
e.xpected . 

Effective for tax years 
beginning after 1986, the 
reserve method for computing and 
deducting business bad debts is 
not allowable. Only those 
business bad debts which became 
worthless during the taxable 
year are deductible. In 
determining the worthlessness of 
debts, and the amount to be 
included in income because of 
the balance in any reserve for 
bad debts as of January 1, 1987, 
federal rules and regulations in 
effect for the taxable year will 
be followed to the extent that 
they are not contrary to the 
context and intent of state 
laws . 

History Note: Statutory 
Authority G.S 105-147(1); 
105-1'47(2); 105-147C7); 
105-147(9)a; 105-147(10); 
105-147(24); 105-147(28); 
lo5-148(1); 105-148(2); 



748 



NORTH CAROLINA REGISTER 



105-148(8); 105-262; 
Eff . February 1 , 1976; 
Amended Eff. February 1, 1987; 
August 1, 1986; June 1, 1982; 
April 12, 1981 . 

.3803 OTHER ITEMS 

(b) When a taxpayer acquires 
a bond at a price which is less 
than the redemption value, it is 
acquired at a discount; however, 
no gain is immediately 
reportable. If the bond is sold 
prior to maturity or redeemed at 
maturity for an amount in excess 
of its basis, the taxpayer has a 
reportable gain. If the bond is 
sold prior to maturity for a 
price which is less than its 
basis, the taxpayer has a 
deductible loss. The taxpayer 
reports his gain or deducts his 
loss regardless of whether 
interest on the bond is taxable 
or exempt . 

A U. S. Government Series E 
Savings Bond purchased at a 
given price and redeemable at a 
higher price based on a schedule 
printed on the bond is not 
considered a bond purchased at a 
discount. For a bond of this 
type, the difference between the 
purchase price and the 
redemption value is interest 
which is exempt from state 
income tax. 

For obligations acquired on 
or after October 22, 1986, a 
purchaser of stripped bonds or 
coupons is treated as having 
acquired an original issue 
discount bond. The amount 
determined as original issue 
discount is not taxable but must 
be taken into account in 
determining the taxpayer's basis 
in the obligation. In 
determining the amount of 
original issue discount and the 
adjustment to the basis, federal 
rules and regulations in effect 
during the income year will be 
followed which are not deemed to 
be contrary to the context and 
intent of state law. 

(n) Federal rules and 
regulations in effect during the 
income year will be followed in 
determining the extent to which 
business or nonbusiness 
deductions are not allowable 
because of being allocable to 
tax exempt income. 

(p) An individual may elect to 
have his or her income tax 
refund applied to estimated 
income ta.x for the following 
year . For example . an 
individual due a refund on his 
1985 income tax return may have 
all or any portion of the refund 
applied to his estimated ta.x for 
1986. The individual may not 



however, file a 1985 return in 
1987 and request the refund be 
applied to his 1987 estimated 
ta.x since the refund can only be 
applied to the tax year which 
follows the year for which the 
request for the refund is made. 

If an individual due an 
income tax refund makes a valid 
election under G.S. 105-269.4 
for the refund to be applied to 
estimated income tax for the 
following year and the elected 
amount is credited as a payment 
of estimated income tax, it 
loses its character as an 
overpayment for the year in 
which it arose. If the election 
is valid, the taxpayer may not 
revoke the election in order to 
have the amount refunded or 
applied in any other manner, 
such as an offset against any 
subsequently determined tax 
liability. 

History Note: Statutory 
G.S. 8-45.3; 105-142(a); 
105-144(a); 105-144.3; 
105-147(1)h; 105-147(9)a; 
105-147(17); 105-147(19); 
105-148(1); 105-159.1; 
105-163. 16(c); 1 05-1 63 . 1 6(e ) ; 
105-251; 105-262; 147-77; 
Eff. February 1, 1976; 
Amended Eff. February 1, 1987; 
August 1, 1986; May 1, 1984; 
June 1 , 1982 . 

SUBCHAPTER 7B - STATE SALES AND 
USE TAX 

SECTION .1100 - SALES OF BULK 

TOBACCO BARNS: FARM 

MACHINES AND MACHINERY 

.1123 BUILDING MATERIALS 

SOLD TO LIVESTOCK AND 
POULTRY FARMERS 
Effective August 1, 1986, 
sales to commercial livestock 
and poultry farmers of materials 
to be used exclusively in the 
construction, repair or 
improvement of any enclosure or 
structure specifically designed, 
constructed, and used for 
commercial purposes for housing, 
raising, or feeding livestock 
and poultry or for housing 
equipment necessary for these 
activities, including work space 
used solely for these commercial 
activities, are e.xempt from 
sales and use taxes. Likewise, 
sales of materials for the above 
described uses to contractors 
performing contracts with 
commercial livestock and poultry 
farmers and subcontractors 
performing contracts with 
general contractors who have 
contracts with commercial 
livestock and poultry farmers 



NORTH CAROLINA REGISTER 



749 



shall be exempt. The exemption 
from tax extends only to 
building materials, as such, 
which are used in the 
construction, repair or 
improvement of such enclosures 
or structures and which become a 
part of such enclosures or 
structures. The exemption does 
not extend to sales of equipment 
and machinery used to equip such 
enclosures or structures. For 
the purpose of this Rule, the 
words "livestock and poultry" 
include cattle, horses, mules, 
sheep, chickens, turkeys and 
other similar domestic animals 
and fowl usually held or 
produced on a farm for 
commercial purposes and the word 
"commercial" shall mean "held or 
produced for income or profit." 
Commercial farmers, contractors 
and subcontractors may obtain 
Commercial Poultry and Livestock 
Farmers' Certificate, Form 
E-599S, from the Sales and Use 
Tax Division, North Carolina 
Department of Revenue, to be 
executed by them and furnished 
to their vendors in connection 
with such purchases as the 
vendor's authority to exempt 
such purchases from sales and 
use taxes . 

History Note: Statutory 
Authority G.S. 105-164.4; 
105-164.6; 105-262; 
Eff. February 1, 1987. 

SECTION .1600 - SALES TO 
OR BY HOSPITALS: EDUCATIONAL: 
CHARITABLE OR RELIGIOUS 
INSTITUTIONS: ETC., AND 
REFUNDS THERETO 

.1602 REFUNDS TO INSTITUTIONS: 
ETC. 

(d) All refund claims must 
be substantiated by proper 
documentary proof and only the 
taxes actually paid by the 
claimant during the period for 
which the claim for refund is 
filed may be included in the 
claim. Any local one percent, 
one and one-half percent or two 
percent sales or use taxes 
included in the claim must be 
separately stated in the claim 
for refund. In cases where more 
than one county's tax has been 
paid, a breakdown must be 
attached to the claim showing 
the amount of each county's one 
percent, one and one-half 
percent and two percent local 
tax separately. 

(f) To substantiate a refund 
claim for sales or use taxes 
paid on purchases of building 
materials, supplies, fixtures 
and equipment by its contractor. 



the claimant must secure from 
such contractor certified 
statements setting forth the 
cost of the property purchased 
from each vendor and the amount 
of state and local sales or use 
taxes paid thereon. In the 
event the contractor makes 
several purchases from the same 
vendor, such certified statement 
must indicate the invoice 
numbers, the inclusive dates of 
the invoices, the total amount 
of the invoices and the sales 
and use taxes paid theron. Such 
statement must also include the 
cost of any tangible personal 
property withdrawn from the 
contractor's warehouse stock and 
the amount of state and local 
sales or use tax paid thereon by 
the contractor. Similar 
certified statements by his 
subcontractors must be obtained 
by the general contractor and 
furnished to the claimant. Any 
local one percent, one and 
one-half percent or two percent 
sales or use taxes included in 
the contractor's statements must 
be shown separately from the 
state sales or use taxes. 

History Note: Statutory 
Authority G. S. 105-164.14; 
105-262; 105-264; 
Eff. February 1, 1976; 
Amended Eff. February 1, 1987; 
May 1, 1985; January 3, 1984; 
September 30, 1977. 

SECTION .1700 - SALES TO OR BY 
THE STATE: COUNTIES: CITIES: 
AND OTHER POLITICAL SUBDIVISIONS 

.1701 GOVERNMENTAL SALES AND 
PURCHASES 

(a) Sales of tangible personal 
property not specifically exempt 
by statute to the State of North 
Carolina, counties, cities, 
towns, and political 
subdivisions or any agencies 
thereof for the purpose of use 
or consumption are subject to 
the sales or use tax, except, 
effective August 1, 1986, sales 
of tangible personal property, 
intrastate telephone service, 
electricity and piped natural 
gas directly to the Department 
of Tranportation are exempt from 
sales and use taxes. However, 
the exemption does not extend to 
sales of taiigible personal 
property to contractors for use 
in the performance of contracts 
with the Department of 
Transportation nor to sales of 
tangible personal property to 
other agencies, local 
governments or employees of the 
Dcoartment of Transportation. 
Saj.es of building materials. 



750 



NORTH CAROLINA REGISTER 



supplies. fixtures, and 
equipment to contractors for use 
in the performance of contracts 
with the federal government or 
any above referred to 
governmental units or agencies 
are also subject to the sales or 
use tax. 

History Note: Statutory 
Authority G.S. 105-164.4; 
105-164.6; 105-262; 
Eff . February 1 , 1976; 
Amended Eff. February 1, 1987; 
January 1 . 1982. 

.1702 REFUNDS TO COUNTIES: 
CITIES: ETC 

(b) All refund claims must be 
substantiated by proper 
documentary proof and only those 
taxes actually paid by the 
claimant during the fiscal year 
covered by the refund claim may 
be included in the claim. Any 
local one percent, one and 
one-half percent or two percent 
sales or use taxes included in 
the claim must be separately 
stated in the claim for refund. 
In cases where more than one 
county's sales and use tax has 
been paid, a breakdown must be 
attached to the claim for refund 
showing the amount of each 
county's one percent, one and 
one-half percent and two percent 
local tax separately. 

(d) To substantiate a refund 
claim for sales or use ta.xes 
paid on purchases of building 
materials, supplies, fixtures, 
and equipment by its contractor, 
the claimant must secure from 
such contractor certified 
statements setting forth the 
cost of the property purchased 
from each vendor and the amount 
of state and local sales or use 
taxes paid thereon. In the 
event the contractor makes 
several purchases from the same 
vendor, such certified statement 
must indicate the invoice 
numbers, the inclusive dates of 
the invoices, the total amount 
of the invoices, and the state 
and local sales and use taxes 
paid thereon. Such statement 
must also include the cost of 
any tangible personal property 
withdrawn from the contractor's 
warehouse stock and the amount 
of state and local sales or use 
ta.x paid thereon by the 
contractor. Similar certified 
statements by his subcontractors 
must be obtained by the general 
contractor and furnished to the 
claimant . Any local one 
percent, one and one-half 
percent or two percent sales or 
use taxes included in the 
contractor's statements must be 



shown separately from the state 
sales or use taxes. The 
contractor's statements must not 
contain sales or use taxes paid 
on purchases of tangible 
personal property purchased by 
such contractors for use in 
performing the contract which 
does not annex to, affix to or 
in some manner become a part of 
the building or structure being 
erected, altered or repaired for 
the governmental entities as 
defined by G.S. 1 05-1 64 . 1 4(c ) . 
Examples of property on which 
sales or use tax has been paid 
by the contractor and which 
should not be included in the 
contractor's statement are 
scaffolding, forms for concrete, 
fuel for the operation of 
machinery and equipment, tools, 
equipment repair parts and 
equipment rentals, blueprints, 
etc . 

History Note: Statutory 
Authority G.S. 105-164.14; 
105-262; 

Eff. February 1, 1976; 
Amended Eff. February 1, 1987; 
August 1, 1986; May 1, 1985; 
March 1, 1985. 

SECTION .3600 - FUNERAL EXPENSES 

.3601 IN GENERAL 
(a) Except as otherwise 
provided in Paragraph (b) of 
this Rule, all funeral expenses, 
including gross receipts from 
tangible personal property 
furnished or services rendered 
by funeral directors, morticians 
or undertakers are subject to 
the three percent sales or use 
tax. Where coffins, caskets, 
vaults and memorial stones or 
monuments are provided by the 
same funeral home and a separate 
charge is paid for services, the 
provisions of this Rule shall 
apply to the total for both. 
For additional information 
regarding the sale and 
installation of memorial stones 
and monuments, see 17 NCAC 7B 
.3400. 

History Note: Statutory 
Authority G.S. 105-164.4; 
105-164.6; 105-164.13; 
105-262; 

Eff. February 1. 1976; 
Amended Eff. February 1, 1987; 
February 1 , 1986; 
January 3, 1984. 

SECTION .4300 - REFUNDS TO 

INTERSTATE CARRIERS 

.4301 IN GENERAL 

(a) Any person engaged in 



NORTH CAROLINA REGISTER 



751 



transporting persons or property 
in interstate commerce for 
compensation who is subject to 
regulation by. and to the 
jurisdiction of, the Interstate 
Commerce Commission or the 
United States Department of 
Transportation and who is 
required by either such federal 
agency to keep records according 
to its standard classification 
of accounting or, in the case of 
a small certified air carrier, 
is required by the United States 
Department of Transportation to 
make reports of financial and 
operating statistics, may secure 
from the Secretary of Revenue a 
refund of the North Carolina 
state and county sales or use 
tax paid by such person on 
purchases or acquisitions of 
lubricants, repair parts and 
accessories in this state for 
motor vehicles, railroad cars, 
locomotives and airplanes 
operated by such person. Class 
I, II and III common and 
contract carriers are under the 
jurisdiction of the Interstate 
Commerce Commission; however. 
Class III common and contract 
carriers are not required to 
keep records according to the 
Interstate Commerce Commission's 
standard classification of 
accounting and are not entitled 
to a refund under the provisions 
of this Rule. Persons not 
meeting all of the requirements 
in this Rule are not entitled to 
a refund under the provisiosn of 
this Rule. 

History Note; Statutory 
Authority G.S. 105-164.14; 
105-262; 

Eff . February 1 , 1976; 
Amended Eff. February 1, 1987; 
March 1, 1984; January 3, 1984. 

SECTION .4400 - LEASE OR RENTAL 

.4410 ASSIGNMENT OF LEASE 
(a) Where upon a recourse 
basis a lessor assigns a lease 
contract and gives a security 
interest in the leased property 
which is designated as such but 
retains title to such property, 
the lessor remains liable for 
collecting and remitting tax on 
the lease receipts 
notwithstanding that the lessor 
docs not receive rental payments 
directly from the lessee. 
However, if the assignee 
enforces the security agreement 
and acquires title to the leased 
property, he becomes the lessor 
of such property and liable for 
collecting and remitting tax on 
the receipts from its lease or 
rental . 



(b) Where for security 
purposes and upon, a recourse 
basis, a lessor assigns a lease 
contract together with its 
right, title and interest in the 
leased property, but the 
property will revert to the 
lessor at the expiration of the 
lease, the lessor remains liable 
for collecting and remitting tax 
on the lease receipts 
notwithstanding that the lessor 
does not receive rental payments 
directly from the lessee. 

(c) Where upon a nonrecourse 
basis a lessor assigns a lease 
contract and without reservation 
of any interest, transfers all 
its right, title and interest in 
the leased property, the lessor 
is liable for remitting the tax 
due on the entire balance of the 
lease contract at the time of 
assignment including any amount 
withheld as a financing reserve. 

History Note: Statutory 
Authority G.S 105-164.4; 
105-262; 

Eff. February 1, 1976; 
Amended Eff. February 1, 1987. 

SECTION .5300 - CERTIFICATE OF 
AUTHORITY: BOND REQUIREMENTS 

.5301 IN GENERAL 

(d) Certificate holders who 

do not furnish copies of the 
certificate of authority to 
their vendors must pay tax due 
on their purchases. Vendors who 
do not have copies of the 
certificate of authority as part 
of their permanent files are 
liable for and shall charge the 
applicable tax on their sales to 
certificate holders. The 
department's field auditors will 
hold all vendors liable for 
applicable ta.x on sales to 
certificate holders if such 
vendors do not have the 
necessary copies of the 
certificate of authority. 
Certificate holders must keep 
evidence of vendors to whom 
certificates are issued as a 
part of their permanent files so 
that the department's auditors 
can correctly determine the 
vendors' and vendees' liability 
for applicable sales or use 
ta.xes. It is not necessary that 
the certificate of authority be 
furnished to vendors when the 
vendees are purchasing tangible 
personal property which is 
exempt from tax under the 
provisions of G.S. 105-164.13. 

History Note: Statutory 
Authority G.S. 105-164.4; 
105-164.6; 105-262; 
Eff. February 1 , 1976; 



752 



NORTH CAROLINA REGISTER 



Amended Eff. February 1, 1987; 
January 1 , 1982. 

SECTION .5400 - FORMS USED 

FOR SALES AND USE 
TAX PURPOSES 

.5445 COMMERCIAL LIVESTOCK 
AND POULTRY FARMER'S 
CERTIFICATE 
FORM: E-599S 
The Commercial Livestock and 
Poultry Farmers' Certification 
Form, E-599S, is to be completed 
by commercial livestock and 
poultry farmers, contractors for 
commercial livestock or poultry 
farmers, or by subcontractors 
performing work encompassed in a 
contract for a commercial 
livestock or poultry farmer and 
accepted by any vendor as the 
authority for exempting from 
sales and use tax sales of 
materials to be used exclusively 
in the construction, repair or 
improvement of any enclosure or 
structure specifically designed, 
constructed and used or to be 
used for commercial purposes for 
housing, raising, or feeding 
livestock or poultry or for 
housing equipment necessary for 
these activities, including work 
space used solely for these 
commercial activities. 

History Note: Statutory 
Authority G.S. 105-164.4; 
105-262; 
Eff. February 1 , 1987. 

SUBCHAPTER 7C - LOCAL 
GOVERNMENT: MECKLENBURG 
COUNTY AND SUPPLEMENTAL 
LOCAL GOVERNMENT SALES 
AND USE TAX ACTS 

SECTION .0200 - MECKLENBURG 
COUNTY SALES AND 
USE TAX ACT 

.0204 MAXIMUM TAX 
(a) Effective November 1, 
1981, the Mecklenburg County 
Sales and Use Tax Act was 
amended to delete the ten 
dollars ($10.00) maximum tax. 
The one percent Mecklenburg 
County sales or use tax without 
any maximum tax applicable 
thereto will be due on all 
taxable sales or purchases of 
tangible personal property 
subject to the three percent 
state sales or use tax on or 
after November 1, 1981, 
irrespective of the date the 
order is placed. The one 
percent Mecklenburg County sales 
or use tax witJi a maximum 
Mecklenburg County Tax of ten 
dollars ($10.00) per sale will 
continue to be applicable with 



respect to sales to contractors 
of any building materials, 
supplies, fixtures and equipment 
subject to the three percent 
state sales or use tax which 
will annex to or become a part 
of a building or structure being 
erected or constructed under a 
lump sum or unit price contract 
entered into or awarded before 
November 1, 1981, or any lump 
sum or unit price contract 
awarded pursuant to a bid made 
before November 1 , 1981 . 

(b) The lease receipts derived 
by lessors who have entered into 
lease agreements with lessees in 
Mecklenburg County prior to 
November 1, 1981, to lease for a 
definite stipulated period of 
time tangible personal property 
which is subject to the three 
percent state sales or use tax 
will continue to be subject to 
the one percent Mecklenburg 
County sales or use tax with a 
maximum Mecklenburg County tax 
of ten dollars ($10.00) 
applicable for the term of such 
lease agreements provided the 
property is delivered to the 
lessee prior to November 1 , 
1981. The lease receipts 
derived by lessors on lease 
agreements negotiated or 
renegotiated on or after 
November 1, 1981, to lease 
tangible personal property which 
is subject to the three percent 
state sales or use tax will be 
subject to the one percent 
Mecklenburg County sales or use 
ta.x without any maximum tax 
applicable thereto. 

History Note: Statutory 
Authority G.S. 105-262; 
S.L. (1967), Ch. 1096, 
s. 4 and 5; 

Eff. February 1, 1976; 
Amended Eff. February 1, 1987; 
January 1 , 1 982 . 

SECTION .0500 - ADDITIONAL 
SUPPLEMENTAL LOCAL GOVERNMENT 
SALES AND USE TAX ACT 

.0501 TAX IMPOSED 

All counties that levy a one 
percent local sales and use tax 
under Article 39 of Chapter 105 
or under Chapter 1096 of the 
1967 Session Laws and also levy 
a one-half percent local sales 
and use tax under Chapter 105 
may levy an additional one-half 
percent local sales and use tax. 
The adoption, levy, collection, 
distribution, administration and 
repeal of these additional ta.xes 
shall be in accordance with 
Article 39 of Chapter 105 and 
Regulation 17 NCAC 7C .0100, 
.0200 and .0300, except as 



NORTH CAROLINA REGISTER 



753 



provided by statute. All 
additional supplemental sales 
and use taxes shall be collected 
by the Secretary of Revenue and 
may not be collected by the 
taxing county. 

History Note: Statutory 
Authority G.S. 105-262; 
105-^98; 105-501; 
Eff. February 1, 1987. 

.0502 DISTRIBUTION OF 
ADDITIONAL TAXES 

The Secretary shall, on a 
quarterly basis distribute the 
net proceeds of the one-half 
percent additional supplemental 
local sales and use taxes to the 
taxing counties on a per capita 
basis according to the most 
recent annual population 
estimates certified to the 
Secretary of Revenue by the 
State Budget Officer. The 
amount distributed to a taxing 
county shall then be divided 
among the taxing county and its 
municipalities in accordance 
with the method by which the one 
percent local government sales 
and use taxes are distributed. 
If any ta.xes levied by a county 
have not been collected in that 
county for a full quarter 
because of the levy or repeal of 
the taxes, the secrotaiy shall 
distribute a pro rata share of 
taxes to that county based upon 
the number of months the taxes 
were collected during that 
quarter . 

History Note: Statutory 
Authority G.S. 105-262; 
105-498; 105-501; 
Eff. February 1, 1987. 

.0503 SALES CONTRACTS 
Generally, a sale is not 
consummated until delivery is 
made to the purchaser; 
therefore, in the absence of 
unusual circumstances, the 
supplemental local sales or use 
ta.x will be due on all taxable 
sales or purchases of property, 
including building materials, 
which is delivered on or after 
the effective date of the levy 
irrespective of the date the 
order is placed. The 
supplemental local salas and use 
tax shall be applicable with 
respect to sales to contractors 
of any building materials, 
supplies or equipment which will 



be annexed to or become a part 
of a building or structure being 
constructed under a lump sum or 
unit price contract awarded 
before the effective date of the 
levy or awarded pursuant to a 
bid made before the effective 
date of the levy. 

History Note: Statutory 
Authority G.S. 105-262; 
105-498; 105-501; 
Eff. February 1, 1987. 

TITLE 19A - DEPARTMENT OF 
TRANSPORTATION 

CHAPTER 2 - DIVISION OF HIGHWAYS 

SUBCHAPTER 2D - HIGHWAY 
OPERATIONS 

SECTION .0900 - REGULATIONS FOR 
INFORMAL CONSTRUCTION AND REPAIR 
CONTRACTS 

.0901 DELEGATION TO SECRETARY 
The Secretary of Transportation 
is delegated authority to let 
construction or repair contracts 
by soliciting informal bids 
pursuant to G.S. 136-28. 1(b). 
The Secretary of Transportation 
subdelegates this authority to 
the Purchasing Officer of 
Department of Transportation's 
Purchasing Section. 

History Note: Statutory 
Authority G.S. 136-28.1; 
136-18(1); 136-44.1; 
136-45; 143-350(f); 
Eff. February 1, 1987. 

.0902 CONTRACT REQUIREMENTS 
Only Sections 109-9 and 109-10 
(Final Payment and Documents 
Required) of Division I of the 
Standard Specifications for 
Roads and Structures, and only 
Subsection .0825 

(confidentiality of cost 
estimates and bidding list) of 
Section .0800 of 1 9A NCAC 02D 
shall be applicable to contracts 
let pursuant to the informal 
bidding process, unless they are 
otherwise specifically made 
applicable by the contract 
documents . 

History Note: Statutory 
Authority G.S. 136-28.1; 
136-18(1); 136-44.1; 
136-45; 143-350(f); 
Eff. February 1, 1987. 



754 



NORTH CAROLINA REGISTER 



NORTH CAROLINA ADMINISTRATIVE CODE 
LIST OF RULES AFFECTED 



EDITION XI, NO. 3 

AGENCY 

ADMINISTRATION 

1 NCAC 3C 

5C 



AGRICULTURE 
2 



NCAC 



CORRECTION 
5 



NCAC 



HUMAN RESOURCES 



10 



NCAC 



9B 


.0022 




9B 


.0032- 


.0033 


9E 


.0012 




9G 


.0101 




9K 


.0212 




9L 


.2001- 


.2004 


48A 


.0608 




48A 


.0610- 


.0612 


48A 


.0901 




2F 


.2002- 


.2006 


2F 


.2007 




4C 


.1803- 


.1805 


3R 


.0304- 


.0307 


3R 


.1003 




3R 


.1602 




3R 


.1604- 


.1609 


3R 


.1613- 


.1618 


3R 


. 1702 




3R 


. 1704- 


.1709 


3R 


. 1713- 


.1719 


3U 


.0102 




3U 


.0202 




3U 


.0204 




3U • 


.0302- 


.0303 


3U 


.0401- 


.0402 


3U 


.0501 




3U 


.0504 




3U 


.0505 




3U 


.0703- 


.0708 


3U 


.0903 




3U 


.1001 




3U 


.1003 




3U 


.1201 




3U 


.1302 




3U 


. 1403 




3U 


. 1701- 


.1703 


3U 


.1704 




3U 


.1705 




3U 


.1706- 


.1715 


3U 


. 1716- 


.1717 


3U 


. 1902- 


. 1903 


3U 


.2001- 


.2004 


3U 


.2005 




3U 


.2101 




30 


.2201 




3U 


.2204 




3U 


.2316 




14B 


.0101- 


.0106 


143 


.0201- 


.0207 


14C 


.0704- 


.0716 


26G 


.0403 





EFFECTIVE: January 1, 1987 
ACTION TAKEN 



Transfer to 

1 NCAC 4H 

Eff. 11-25-86 

Transfer to 

1 NCAC 4G 

Eff. 11-25-86 



Amended 

Adopted 

Repealed 

Amended 

Amended 

Adopted 

Amended 

Amended 

Amended 



Amended 
Adopted 
Amended 



Amended 

Amended 

Repealed 

Repealed 

Adopted 

Repealed 

Repealed 

Adopted 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Adopted 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Adopted 

Repealed 

Adopted 

Repealed 

Adopted 

Adopted 

Adopted 

Repealed 

Adopted 

Adopted 

Adopted 

Adopted 

Amended 

Repealed 

Adopted 

Amended 



NORTH CAROLINA REGISTER 



755 







26G 


.0504 


Amended 






26G 


.0511 


Amended 






26G 


.0601-. 0602 


Amended 






26H 


.0106 


Amended 






26H 


.0202 


Amended 






26H 


.0204 


Amended 






26H 


.0302-. 0304 


Amended 






26J 


.0201-. 0206 


Adopted 






36 


.0405 


Amended 






^^tC 


. 1601-. 1604 


Amended 






<^6C 


.0101-. 0102 


Amended 






46C 


.0103-. 0104 


Repealed 






^6C 


.0105 


Amended 






-^ec 


.0106-. 0107 


Adopted 






47B 


.0405 


Amended 






49C 


.0101-. 0501 


Adopted 


LABOR 










13 


NCAC 


13 


.0101 


Amended 


NATURAL RESOURCES 


AND 


COMMUNITY DEVELOPMENT 


15 


NCAC 


10F 


.0305 


Amended 


REVENUE 










17 


NCAC 


1C 


.0402 


Amended 


VETERINARY 


MEDICAL BOARD 




21 


NCAC 


66 


.0206 


Amended 






66 


.0601 


Adopted 


EDUCATION 










23 


NCAC 


2C 


.0301 


Amended 






2C 


.0305 


Adopted 


OFFICE OF 


ADMINISTR.ATIVE HEARINGS 




26 


NCAC 


1 


.0002 


Adopted 






3 


.0011 


Amended 






3 


.0026 


Amended 






3 


.0028 


Amended 



756 



NORTH CAROLINA REGISTER 



TITLE/MAJOR DIVISIONS OF THE NORTH CAROLINA ADMINISTRATIVE CODE 
TITLE DEPARTMENT 



1 
2 
3 
4 
5 
6 
7 
8 
9 
10 

n 

12 
13 
14A 
15 
16 
17 
18 
19A 
20 
)(21 
22 
23 
24 
25 
26 



Administration, Department of 

Agriculture, Department of 

Auditor, Department of State 

Commerce, Department of 

Corrections, Department of 

Council of State 

Cultural Resources, Department 

Elections, State Board of 

Governor 

Human Resources, Department of 

Insurance, Department of 

Justice, Department of 

Labor. Department of 

Crime Control, Department of 

Natural Resources and Community Development 

Education, Department of 

Revenue, Department of 

Secretary of State 

Transportation, Department of 

Treasurer, Department of State 

Occupational Licensing Boards 

Administrative Procedures 

Community Colleges, Department of 

Independent Agencies 

Personnel, Department of State 

Office of Administrative Hearings 



NOTE: Title 21 contains the chapters of the various 
occupational licensing boards. 



CHAPTER 

2 

4 

6 

8 
10 
12 
14 
16 
18 
20 
21 
22 
26 
28 
30 
31 
32 
33 
34 
36 
37 
38 
40 
42 
44 
46 
48 
50 
52 
53 
54 
56 
58 
60 
62 
64 

66 



LICENSING BOARD 

Architecture, Board of 

Auctioneers. Commission for 

Barber Examiners, Board of 

Certified Public Accountant Examiners 

Chiropractic Examiners, Board of 

Contractors, Licensing Board for 

Cosmetic Art Examiners. Board of 

Dental Examiners, Board of 

Electrical Contractors, Board of Examiners 

Foresters, Board of Registration for 

Geologists, Board of 

Hearing Aid Dealers and Fitters Board 

Landscape Architects, Licensing Board of 

Landscape Contractors, Registration Board of 

Law Examiners. Board of 

Martial & Family Therapy Certification Board 

Medical Examiners. Board of 

Midwifery Joint Committee 

Mortuary Science, Board of 

Nursing, Board of 

Nursing Home Administrators, Board of 

Occupational Therapist, Board of 

Opticians, Board of 

Optometry, Board of Examiners in 

Osteopathic Examination and Registration 

Pharmacy, Board of 

Physical Therapy, Examining Committee of 

Plumbing and Heating Contractors, Board of 

Podiatry Examiners, Board of 

Practicing Counselors, Board of 

Practicing Psychologists, Board of 

Professional Engineers and Land Surveyors 

Real Estate Commission 

Refrigeration Examiners, Board of 

Sanitarian Examiners, Board of 

Speech and Language Pathologists and 

Audiologists , Board of Examiners of 
Veterinary Medical Board 



NORTH CAROLINA REGISTER 



757 



CUMULATIVE INDEX 
(April 1, 1986 - March 31, 1987) 



1986 



Pages 



Issue 







1 


-73 


April 






74 


-97 


May 






98 


-132 


June 






133 


-222 


July 






223 


- 379 


August 






380 


- 415 


September 






416 


- 553 


October 






554 


- 598 


November 






599 


- 670 


December 






671 


-761 


January 


AO 


- 


Administr 


ative Order 




AG 


- 


Attorney 


General's Opinions 




C 


- 


Correction 




E 


- 


Errata 






EO 


- 


Executive 


Order 




FDL 


- 


Final Decision Letters 




FR 


- 


Final Rul 


e 




GS 


- 


General Statute 




JO 


- 


Judicial 


Order 




LRA 


- 


List of Rules Affected 




M 


- 


Miscellaneous 




NP 


- 


Notice of 


Petitions 




PR 


- 


Proposed 


Rule 




SO 


- 


Statement 


s of Organization 




TR 


- 


Temporary 


Rule 





ADMINISTRATION 
Administrative Analysis, 614 PR 
Auxiliary Services, 611 PR, 677 PR 
Conucil on Children and Youth, 681 PR 
Departmental, 606 PR 
Office of Marine Affairs, 382 PR 
Public Telecommunications, 614 PR 
Purchase and Contract. 423 PR 

State Employees Combined Campaign, 430 PR, 681 PR 
State Property, 677 PR 
Youth Advisory Council, 680 PR 

ADMINISTRATIVE ORDERS 
Beecher Reynolds Gray, 47 AO 
Fred Gilbert Morrison, Jr., 48 AO 
Angela Rebecca Bryant, 49 AO 
Thomas R. West, 50 AO 
Abraham Penn Jones, 98 AO 
Administrative Law Judges, 248 AO 
Margaret Eugenia Rogers, 419 AO 
Kenneth Wayne Patterson, 420 AO 
Robert R. Reilly, Jr., 673 AO 

AGRICULTURE 
Dcpt. of Agriculture, 250 SO, 558 PR 

Food and Drug Protection Division, 99 PR, 255 PR, 557 PR 
Gasoline and Oil Inspection, 683 PR 
Markets, 559 PR 
Plant Industry, 256 PR 
Standards Division. 558 PR 
Structural Pest Control, 557 PR, 599 C 



ATTORNEY GENERAL'S OPINIONS 
Employee Insurance Committees. 



603 AG 



758 



NORTH CAROLINA REGISTER 



COMMERCE 
ABC Commission, 615 PR 
Banking Commission, 689 PR 
Cemetary Commission, 559 PR 

Milk Commission, 74 PR, 135 PR, 260 PR, 689 PR 
Savings and Loan, 78 PR, 560 PR 

COMMUNITY COLLEGES 
Community Colleges, 210 PR, 534 PR 

CORRECTION 
Division of Prisons, 213 FR, 347 FR, 575 FR, 661 PR 
Parole Commission, 663 PR 

CRIME CONTROL a PUBLIC SAFETY 
ALE, 631 PR 

CULTURAL RESOURCES 
Archives and History. 78 PR 
Battleship Commission, 388 PR 
Roanoke Voyages & Eliz. II, 261 PR 

EXECUTIVE ORDERS 

Executive Orders 1-25, 23 EO 

26, 247 EO 

27, 416 EO 

28, 417 EO 

29, 554 EO 

30, 672 EO 

FINAL DECISION LETTERS 
Voting Rights Act, 249 FDL, 421 FDL, 555 FDL, 600 FDL, 674 FDL 

GENERAL STATUTES 
Chapter 7A, 21 GS, 244 GS 
Chapter 150B, 3 GS, 226 GS, 380 C 
Chapter 1028, 223 GS 

HUMAN RESOURCES 
Child Day Care, 281 PR, 631 PR 
Children Services, 103 PR 
Departmental, 691 PR 
Facility Services, 270 PR 
Food Assistance, 103 PR 

Health Services, 169 PR, 388 PR, 434 PR, 563 PR, 698 PR 
Individual and Family Support, 103 PR, 671 C 
Medical Assistance, 181 PR, 389 PR, 501 PR 
Medical Care Commission, 433 PR 
Medical Services, 101 PR 
Mental Health Retardation 

and Substance Abuse, 80 PR, 298 PR, 350 FR, 380 C, 720 PR, 729 PR 
Services for the Blind, 727 PR 
Social Services, 390 PR, 616 PR 
Youth Services, 85 PR, 309 PR 

INDEPENDENT AGENCIES 
Housing Finance, 658 PR, 740 PR 

INSURANCE 
Agency Services, 313 PR 
Company Operations, 503 PR 

Engineering & Building, 321 PR, 564 PR, 729 PR 
Fire and Casualty, 501 PR 
Medical Database, 565 PR 

JUDICIAL ORDERS 
Appointment 
Robert A. Melott, 45 JO 

JUSTICE 
Alarm Systems Licensing, 556 SO, 730 PR 
Education and Training Standards, 322 PR 
Police and Information Network, 107 PR 

NORTH CAROLINA REGISTER 759 



Private Protective Services, 556 SO 
Sheriff's Education, 332 PR 

LABOR 
Boiler and Pressure Vessel, 86 PR, 189 PR, 338 PR 
Elevator Division, 517 PR 

LICENSING BOARD 
Architecture, 734 PR 

C P A Examiners, 112 PR, 133 SO, 529 PR, 734 PR 
Dental Examiners, 399 PR, 533 PR 
General Contractors, 573 PR 
Medical Examiners, 92 PR, 399 PR 
Midwifery Joint Committee, 422 SO 
Mortuary Science, 534 PR 
Nursing, 422 SO, 574 PR 
Occupational Therapy, 206 PR 
Pharmacy, 208 PR 

Plumbing and Heating Contractors, 116 PR 
Real Estate Commission, 401 PR 
Social Work, 653 PR 
Veterinary Medical Board, 341 PR 

LIST OF RULES AFFECTED 
Volume 10, No. 1 
(April 1, 1986), 71 LRA 
Volume 10, No . 2 
(May 1 , 1986), 94 LRA 
Volume 10, No . 3 
(June 1 , 1986), 127 LRA 
Volume 10, NO. 4 
(July 1 , 1986) , 217 LRA 
Volume 10, No . 5 
(August 1, 1986), 374 LRA 
Volume 10, No. 6 
(September 1, 1986), 410 LRA 
Volume 10, No. 7 
(October 1, 1986), 548 LRA 
Volume 11, No. 1 
(November 1, 1986), 594 LRA 
Volume 11, No . 2 
(December 1, 1986), 665 LRA 
Volume 11, No. 3 
(January 1, 1987), 755 LRA 

MISCELLANEOUS 
Federal Rule Amendment, 381 M 

NATURAL RESOURCES AND COMMUNITY DEVELOPMENT 
Natural Resources & Comunity Development, 133 SO 
Coastal Management, 112 FR, 401 FR, 571 PR, 733 PR 
Departmental Rules, 109 PR, 118 FR 
Economic Opportunities, 528 PR 
Employmental and Training, 111 PR 
Environmental Management, 88 PR, 190 PR, 339 PR, 396 PR, 520 PR 

632 PR 
Forest Resources, 126 FR 
Marine Fisheries, 191 PR 
Soil and Water, 90 PR, 521 PR 
Wastewater Treatment, 397 PR 
Wildlife Resources and Water Safety, 110 PR, 205 PR, 340 PR, 398 PR 

422 SO, 527 PR, 634 PR 

NOTICE OF PETITIONS 
Municipal Incorporations, 676 NP 

OFFICE OF ADMINISTRATIVE HEARINGS 
Office of Administrative Hearings, 51 SO 
General, 52 PR, 345 PR 

Hearings Division, 61 PR, 345 PR, 369 FR 
Rules Division, 52 PR, 367 FR 
706 Deferral, 543 PR 

REVENUE 
760 NORTH CAROLINA REGISTER 



Corporate Income Tax, 350 FR 

Departmental, 663 FR 

Individual Income Tax, 351 FR, 593 FR, 748 FR 

Intangible Tax, 366 FR 

Sales & Use Tax, 363 FR 

SECRETARY OF STATE 
Notary Public, 91 PR, 367 FR 

STATE PERSONNEL 
State Personnel Commission, 343 PR, 538 PR, 659 PR 

STATE TREASURER 
Local Government Commission, 529 PR 

STATEMENTS OF ORGANIZATION 
Agriculture, 250 SO 
Alarm System Licensing, 556 SO 
CPA Examiners, 133 SO 
Midwifery Joint Committee, 422 SO 

Natural Resources and Community Development, 133 SO 
Nursing, 422 SO 

Office of Administrative Hearings » 51 SO 
Private Protective Services, 556 SO 
Wildlife Resources Commission, 422 SO 

TRANSPORTATION 
Department of Transportation, 213 FR, 367 FR, 546 FR, 754 FR 



NORTH CAROLINA REGISTER 761 



W9LZ nuijojRO quoN -q^ioiBy 
9991 1 Ja^^BjQ o d 

sSuueaH dAijejisiuiuipv Jo aoyjO 



AIVIS 
DVld 



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